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Is General Mills Stock Underperforming the Dow?

Is General Mills Stock Underperforming the Dow?

Globe and Mail14-06-2025
Minneapolis, Minnesota-based General Mills, Inc. (GIS) is a global manufacturer and marketer of branded consumer foods sold through retail stores. With a market cap of $30.2 billion, the company operates through North America Retail, International, Pet, and North America Foodservice segments.
Companies worth $10 billion or more are typically referred to as "large-cap stocks." GIS fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the packaged foods industry. The company benefits from its vast offerings of ready-to-eat cereals, convenient meals, snacks, and more.
The company touched its 52-week high of $75.90 on Sept. 10 last year and has fallen 28.2% from that peak. In the past three months, GIS stock has declined 16.5%, underperforming the Dow Jones Industrial Average's ($DOWI) 2.3% uptick during the same time frame.
The stock's performance looks grim over the longer term as well. GIS stock has fallen 18.5% over the past 52 weeks and 14.5% on a YTD basis, underperforming Dow's 10.3% gains over the past year and a marginal rise in 2025.
To confirm its recent downturn, GIS has been trading below its 200-day moving average since early November 2024 and below its 50-day moving average since early October 2024, with some fluctuations.
On Mar. 19, GIS shares plunged 2.1% following the release of its mixed Q3 results. The company's net sales decreased 5% year-over-year to $4.8 billion, caused by higher-than-expected retailer inventory reductions and a slowdown in the snacking segment, and missed the Street's estimates. Its adjusted operating profit also declined 13% from the previous year's quarter to $801 million, caused by a 140 basis point drop in its adjusted operating margin to 16.5%. Moreover, GIS' adjusted EPS declined 15% year-over-year to $1.00 but successfully surpassed the consensus estimates by 5.3%.
Its peer, The Kraft Heinz Company (KHC), has declined 13.4% in 2025 and 20.8% over the past year, lagging behind the stock.
Among the 20 analysts covering the GIS stock, the consensus rating is a ' Hold.' Its mean price target of $60.95 suggests a robust 11.8% upside potential from current price levels.
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