×
S&P 500   3,894.03 (+1.27%)
DOW   31,305.05 (+0.86%)
QQQ   294.08 (+1.83%)
AAPL   145.87 (+2.06%)
MSFT   267.54 (+0.50%)
META   171.66 (+1.11%)
GOOGL   2,353.82 (+2.72%)
AMZN   116.33 (+1.75%)
TSLA   729.51 (+4.94%)
NVDA   158.02 (+4.44%)
NIO   22.45 (+7.78%)
BABA   123.52 (+3.69%)
AMD   79.07 (+4.94%)
MU   58.44 (+1.87%)
CGC   2.70 (+1.89%)
T   21.13 (+0.19%)
GE   62.39 (+1.33%)
F   11.60 (+4.88%)
DIS   97.07 (+1.03%)
AMC   14.09 (+12.09%)
PFE   53.01 (+0.49%)
PYPL   74.57 (+1.82%)
NFLX   189.26 (+2.83%)
S&P 500   3,894.03 (+1.27%)
DOW   31,305.05 (+0.86%)
QQQ   294.08 (+1.83%)
AAPL   145.87 (+2.06%)
MSFT   267.54 (+0.50%)
META   171.66 (+1.11%)
GOOGL   2,353.82 (+2.72%)
AMZN   116.33 (+1.75%)
TSLA   729.51 (+4.94%)
NVDA   158.02 (+4.44%)
NIO   22.45 (+7.78%)
BABA   123.52 (+3.69%)
AMD   79.07 (+4.94%)
MU   58.44 (+1.87%)
CGC   2.70 (+1.89%)
T   21.13 (+0.19%)
GE   62.39 (+1.33%)
F   11.60 (+4.88%)
DIS   97.07 (+1.03%)
AMC   14.09 (+12.09%)
PFE   53.01 (+0.49%)
PYPL   74.57 (+1.82%)
NFLX   189.26 (+2.83%)
S&P 500   3,894.03 (+1.27%)
DOW   31,305.05 (+0.86%)
QQQ   294.08 (+1.83%)
AAPL   145.87 (+2.06%)
MSFT   267.54 (+0.50%)
META   171.66 (+1.11%)
GOOGL   2,353.82 (+2.72%)
AMZN   116.33 (+1.75%)
TSLA   729.51 (+4.94%)
NVDA   158.02 (+4.44%)
NIO   22.45 (+7.78%)
BABA   123.52 (+3.69%)
AMD   79.07 (+4.94%)
MU   58.44 (+1.87%)
CGC   2.70 (+1.89%)
T   21.13 (+0.19%)
GE   62.39 (+1.33%)
F   11.60 (+4.88%)
DIS   97.07 (+1.03%)
AMC   14.09 (+12.09%)
PFE   53.01 (+0.49%)
PYPL   74.57 (+1.82%)
NFLX   189.26 (+2.83%)
S&P 500   3,894.03 (+1.27%)
DOW   31,305.05 (+0.86%)
QQQ   294.08 (+1.83%)
AAPL   145.87 (+2.06%)
MSFT   267.54 (+0.50%)
META   171.66 (+1.11%)
GOOGL   2,353.82 (+2.72%)
AMZN   116.33 (+1.75%)
TSLA   729.51 (+4.94%)
NVDA   158.02 (+4.44%)
NIO   22.45 (+7.78%)
BABA   123.52 (+3.69%)
AMD   79.07 (+4.94%)
MU   58.44 (+1.87%)
CGC   2.70 (+1.89%)
T   21.13 (+0.19%)
GE   62.39 (+1.33%)
F   11.60 (+4.88%)
DIS   97.07 (+1.03%)
AMC   14.09 (+12.09%)
PFE   53.01 (+0.49%)
PYPL   74.57 (+1.82%)
NFLX   189.26 (+2.83%)

General Mills Continues to Show Why It’s a Fortress Stock

Saturday, March 26, 2022 | Chris Markoch
General Mills Continues to Show Why It’s a Fortress Stock

Value investors can buy this stock before the upgrade cycle kicks in 

General Mills (NYSE:GIS) stock is up 7% since it posted third-quarter 2022 earnings after the market closed on March 23. We see this as just the start of the next leg up for a stock that looks primed to move past its 52-week high and will likely set a new all-time high.  

The only reason that GIS stock didn’t move even higher is because the company’s revenue was a slight miss. That may also be the reason why investors are delaying in issuing new (and we suspect) higher price targets for the stock. 

There are some stocks that fall into the category of fortress stocks. General Mills is one of them. With the stock likely to move higher, investors have an intriguing buying opportunity.  

Passing Along Costs 

I don’t want to be insensitive about inflation. We all go to the grocery store, and I know that it costs me significantly more to buy the same amount of groceries. But when I put on my investor hat, I need to put my feelings about inflation aside. And that means asking what companies are likely to be able to pass along higher costs to consumers. 

That’s what you have with General Mills. Through the first three quarters of its fiscal year, the company was already on track to deliver higher full-year revenue than the prior year. But more interesting to investors is that the company raised its guidance.  

The company also expressed confidence that they can pass along higher prices to offset its rising input costs. And if you look at the company’s earnings deck (pages 17 and 18), I see a key reason why that confidence is not based on wishful thinking.  


Showing Growth in Two of the Fastest Growing Sectors 

Two of the biggest revenue drivers in the prior quarter came from the Pet and Foodservice segments.  

Increased spending on pet care was trending prior to the pandemic. But with the onset of the pandemic, many families added a furry companion or two. And that means that this sector will maintain its strength for years to come.  

And with Covid restrictions being lifted throughout the country it means a return to in-person learning. It may also be a harbinger of growth in hotel and restaurant stocks that are relying on the company’s products.  

Why Now is the Right Time to Buy GIS Stock 

Depending on where you live, you may be experiencing a shortage of some items on store shelves. And General Mills told investors that the company is still dealing with supply chain disruptions.  

On page 9 of the company's earnings presentation, General Mills indicates that the short-term disruptions are abating, but there is still some work to be done. And on the following page of the deck, it states that the company's input cost inflation outlook will be between 8% and 9%.  

This means that the company is likely to start seeing an acceleration in revenue and earnings that would support a valuation that, at the moment, may look a little expensive. This may not be fully priced into GIS stock until the company reports full-year 2022 earnings in June. In the meantime, opportunistic investors should look at General Mills as a great opportunity to get a little growth and enjoy a solid dividend along the way.  

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
General Mills (GIS)
2.1438 of 5 stars
$75.37-1.1%2.71%17.05Hold$72.55
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in General Mills right now?

Before you consider General Mills, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and General Mills wasn't on the list.

While General Mills currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here

Free Email Newsletter

Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter:


Most Read This Week

Recent Articles

Search Headlines:

Latest PodcastIs The Market Near a Bottom, Does it Matter?

Today’s interview is a little different, in that you get a LOT of market perspective from someone who’s been analyzing stocks from the ground up, for more than three decades. In this conversation, Kate chats with Nancy Zambell, the chief analyst for the Cabot Money Club Letter - and Nancy has a really deep and varied background in the financial industry - as she mentions in this interview, she’s been a banker, real estate professional, and a stock market analyst.

MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at contact@marketbeat.com | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.