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Here's Why General Mills (GIS) is a Strong Value Stock
GISGeneral Mills(GIS) Zacks Investment Research·2024-03-06 15:41

Zacks Premium Features - Zacks Premium provides daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens to help investors make informed decisions [1] - The service includes Zacks Style Scores, which are complementary indicators designed to help investors pick stocks with the best chances of outperforming the market over the next 30 days [1] - Each stock is rated from A to F based on value, growth, and momentum qualities, with higher scores indicating better potential for outperformance [1] Zacks Style Scores Breakdown - Value Score: Focuses on identifying undervalued stocks using metrics like P/E, PEG, Price/Sales, and Price/Cash Flow ratios [2] - Growth Score: Evaluates a company's financial strength, health, and future outlook by analyzing projected and historic earnings, sales, and cash flow [2] - Momentum Score: Identifies stocks with upward or downward trends in price or earnings outlook using factors like one-week price change and monthly percentage change in earnings estimates [2] - VGM Score: Combines Value, Growth, and Momentum Scores to provide a weighted rating, helping investors find stocks with the most attractive value, growth forecast, and momentum [3] Zacks Rank and Style Scores Integration - The Zacks Rank uses earnings estimate revisions to help investors build successful portfolios, with 1 (Strong Buy) stocks delivering an average annual return of +25.41% since 1988 [4] - Style Scores complement the Zacks Rank by narrowing down the selection of top-rated stocks, making it easier for investors to align their choices with their goals [4] - Stocks with a Zacks Rank 1 or 2 and Style Scores of A or B offer the highest probability of success, while 3 (Hold) stocks should also have Scores of A or B to maximize upside potential [5] - Stocks with a 4 (Sell) or 5 (Strong Sell) rating, even with high Style Scores, are likely to have declining earnings forecasts and share prices [5] General Mills (GIS) Analysis - General Mills is a global manufacturer and marketer of branded consumer foods, including ready-to-eat cereals, snacks, and baking products, with a presence in retail, foodservice, and commercial baking industries [6] - GIS holds a Zacks Rank 3 (Hold) and a VGM Score of B, with a Value Style Score of B due to attractive valuation metrics like a forward P/E ratio of 14.37 [6] - For fiscal 2024, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate increased to $4.49 per share, with an average earnings surprise of 5.7% [6] - With a solid Zacks Rank and strong Value and VGM Style Scores, GIS is a stock worth considering for investors [7]