General Mills, Inc. (GIS)

General Mills stock forecast: buy or sell

General Mills stock outlook

  • After making new all-time highs on Tuesday, General Mills closed on Friday at $64.35 barely moving a 0.26%
  • From the chart point view, price is drawing a scaled uptrend since last February with higher tops and higher bottoms. Up to date, shares made a 40.41% gain since the beginning of this rally
  • On Tuesday broke out above its latest top at $65.48
  • General Mills, Inc. manufactures and markets branded consumer foods worldwide.
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Please read:
The thoughts given in this post are personal and not recommendations for you to buy or sell stocks. The author of this report does not know the particular scenarios of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are published for educative reasons only

General Mills stock chart overview

Should I buy General Mills stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is GIS stock a buy?

In the current situation of General Mills there is just one buy setup eligible:

Uptrend buy setup

General Mills stock is in an uptrend since last February that so far marked an amazing 40% gain. Price marked a local bottom in this uptrend at $62.36 on July 31, and since then it bounced up a 3.19%. Now, it's just 1.76% away from breaking out above its last top and resume the uptrend. The new entry point is therefore at $65.48. If you decide to enter this trade, the suggested stop loss is at $60.49

Buy setupBuy pointStop lossRisk
Uptrend buy setup$65.48$60.497.62%
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Should I sell General Mills stock?

Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies allow us to avoid rash decisions based on our personal sentiments or the buzz that surrounds the market. When selling, as well as buying, detailed strategies are very easy to use but are only valid for selling stocks in your porfolio, not for selling short General Mills stock

As a rule of thumb, you should not mantain an operation that shows a greater losses than those expected at the time of the buy. The timing to sell your stock must always be dictated by the stop-loss (automatic or manual)

Is it time to sell General Mills stock?

Currently, General Mills stock doesn't match any of our preferred sell setups, so if you hold General Mills shares and your operation is in profit probably is not time to sell now

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Analysts' recommendations to buy or sell General Mills stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

We don't have any rating published in the previous 30 days for General Mills

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Technical analysis

Since last February, General Mills has been printing an uptrend that by now marked a gorgeous 40.41%. During this uptrend, the price offered some entry points on the breakouts. Latest low was on July 31, when price bounced at $62.36. Now, the price moves in a consolidation between its last top ($65.48) and its last bottom ($62.36)

GIS at new Highs

General Mills reached all-time highs (ATH) on Tuesday at $66.14, and cleared the field for new highs as there are no further resistances. Previous highs were on July 24

SMAs overview

Moving averages are simple indicators for traders to detect direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

Supports and resistances

Investors use supports and resistances as a way to find price points on a chart that may act as barriers, preventing the price of a stock to move in certain direction. Supports are levels where the price may stop as it falls. This means that the price is more likely to "rebound" this level rather than break through it. However, if the price breaks down the support, it is likely to continue declining until finding another support level. On the other side, resistances are where the price tends to find a curb as it moves up. Again, the price is more liable to "bounce off" at this level, and if it finally breaks this level, the price will rise easily until it approaches the next resistance

The current resistances are:

  • R1: $65.48 (1.76% above)
  • The current support levels are:

  • S1: $63.81 (-0.84% below)
  • S2: $62.71 (-2.55% below)
  • S3: $62.36 (-3.09% below)
  • Bollinger bands

    This is an indicator that was developed in the 1980s by John Bollinger. It comprises 3 bands that are drawn superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    The evolution of the Bollinger Bands on the chart proves that they are pretty tight (less than 5%), which clearly means that price volatility is low. Reduced volatility is often the antecedent to a sudden movement (up or down), so we must be alert and manage our buy or sell orders accordingly

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that measures price changes to identify when the share or financial asset is overbought or oversold. Like other oscillation indicators, the RSI fluctuates in a range from 0 to 100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in the late 1970s

    When the Relative Strength Indicator fluctuates for so long below 70 and above 30, without indication of overbought and oversold, the indicator becomes of little use, and we are now in such a case.

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    Earnings and financials

    Q2 financial call was hosted by General Mills in early July after presenting the earnings report. General Mills presented 2nd-quarter earnings of $1.10 per share on revenue of $5.0 billion. The market estimate was $1.06 per share on revenue of $5.0 billion.

    In comparison, the EPS for the same quarter last year was $0.83, so posted EPS is a gain of 32.53%. Revenue exploded a 20.75% on an annualized basis in the Q2, from $4.2B to $5.0B last quarter.

    General Mills is presenting Q3 financial report on mid next September. Analysts estimate earnings of %s per-share of $0.87, that is a 20.91% lower than previous quarter. Financial reporting day has a more than usual risk for stock traders as the information provided can gap up or down the stock price with very low liquidity and not honouring your buy or stop-loss orders. It's always good to review company's website to confirm time and details on the earnings call and the earnings report.

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