General Mills Inc. (NYSE:GIS) stock price has climbed 107% since January 2019, 13% since the start of 2022 and 8% in June.
The Minneapolis-based company is known for its large portfolio of cereals and food brands, including Gold Medal flour, Annie's Homegrown, Lärabar, Cascadian Farm, Betty Crocker, Yoplait, Nature Valley, Totino's, Pillsbury, Old El Paso, Häagen-Dazs and Cheerios. It currently employs around 35,000 people with annual revenue of approximately $18 billion.
The stock performance reflects these healthy figures. Below is the monthly timeframe.
So, investors, when is the right time to buy this stock?
In terms of its current setup, investors would be wise to keep a close eye on General Mills. It is printing new all-time highs, and breaking out from a consolidation that has been in play since June 2016.
As the expression goes, the longer the consolidation, the bigger the breakout. And the signs are positive for further strength. For aggressive investors/traders, now is a good time to watch, analyze and consider an entry.
The downside? You leave yourself open to a fake breakout. Therefore, the risk should be adjusted accordingly. For the more conservative investor, a recovery in the market as a whole is still needed. The indices first need to show bullishness before this stock or any other stock is to be considered for the portfolio. I cover this in detail in this article on current market conditions.
This is where patience comes in and is my preferred stance for now. The indices could still drop further, dragging individual stocks down. General Mills may not tank like PayPal Holdings Inc. (NASDAQ:PYPL), but it could drop far enough to make things uncomfortable. This can be avoided by allowing the market some time to recover before taking a position.
There is no right or wrong answer, just probabilities accompanied by sound risk management principles.
What is your approach? Ensure your rules are clearly written down in your trading plan and execute accordingly.
Image courtesy of General Mills
