Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Barchart
Barchart
Sohini Mondal

How Is General Mills' Stock Performance Compared to Other Packaged Foods Stocks?

Based in Minneapolis, Minnesota, General Mills, Inc. (GIS) manufactures and markets branded consumer foods. Valued at a market cap of $40.8 billion, the company’s principal product categories include ready-to-eat cereals, convenient meals, snacks, yogurt, super-premium ice creams, baking mixes and ingredients, and pet food products as well. 

Companies worth more than $10 billion are generally labeled as “large-cap” stocks and General Mills fits this criterion perfectly. The company is renowned for its quality, innovation, and more than 100 beloved brands including Cheerios, Pillsbury, Betty Crocker, Nature Valley, Blue Buffalo, and Annie's. 

Despite a 3.8% decline from its 52-week high of $75.90 reached on Sep. 10, shares of this food company have gained 11.3% over the past three months, surpassing the First Trust Nasdaq Food & Beverage ETF (FTXG) 8.8% return over the same time frame. 

www.barchart.com

In the longer term, GIS stock is up 12.1% on a YTD basis, outpacing FTXG’s 5.6% gains. Moreover, shares of GIS have risen 11.5% over the past 52 weeks, compared to FTXG’s 2.3% returns over the same time frame.

Since late July, GIS has been trading above its 200-day and 50-day moving averages, indicating a bullish trend. 

www.barchart.com

General Mills has been outperforming due to its ability to leverage falling input costs to enhance margins, successfully implement strategic price increases, and benefit from its strong brand portfolio, particularly in the packaged food sector. 

Yet, the stock took a nosedive on Jun. 26, plunging nearly 4.6% following its Q4 earnings release due to a year-over-year decline in revenues and earnings while missing consensus revenue estimates. This was driven by a decrease in revenues from North American retail, International, and pet segments, fueled by adverse net price realization and mix and reduced pound volume. Plus, the company’s weak full-year performance further dampened investor confidence. 

While the company has outperformed most of its industry peers, GIS stock appears to be lagging behind its rival, Campbell Soup Company (CPB), which gained almost 16% on a YTD basis and 17.4% over the past 52 weeks.

Nevertheless, Wall Street analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 18 analysts covering the stock, and as of writing, the company is trading above its mean price target of $69.22.

More Stock Market News from Barchart

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.