Bear of the Day: General Mills (GIS)

General Mills GIS is a global manufacturer and marketer of branded consumer foods sold through retail stores.Its principal product categories include ready-to-eat cereals, convenient meals, snacks, yogurt, super-premium ice creams, baking mixes and ingredients, and more. Analysts have taken a bearish stance on the company’s outlook, landing it into a Zack Rank #5 (Strong Sell).Image Source: Zacks Investment ResearchLet’s take a closer look at the company.GIS Shares Face PressureGIS shares have faced consistent selling pressure over the last year, down 26% compared to the S&P 500’s impressive 17% gain. Quarterly results haven’t been enough to boost performance, despite GIS regularly exceeding consensus EPS expectations over recent years.Image Source: Zacks Investment ResearchOrganic net sales were down 3% year-over-year in its latest period, driven by lower volumes and an unfavorable price mix. The company’s profitability has also taken a notable hit, with its gross margin falling 340 basis points to 32.4% throughout the above-mentioned quarter.The profitability hit is certainly notable, helping explain the poor share performance and downward revisions. Operating profit of $504 million fell 35% year-over-year. Still, CEO Jeff Harmening remains positive, stating –“With a clear framework centered on remarkability and positive early returns from our Q4 investments, I’m confident our fiscal 2026 plans will put us on a path back to driving long-term growth in line with our shareholder return model.” The company’s next release is slated for mid-September, with sales revisions also showing a similarly bearish nature as the EPS outlook.Image Source: Zacks Investment ResearchBottom LineNegative earnings estimate revisions paint a challenging picture for the company’s shares in the near term.General Mills GIS is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.For those seeking strong stocks, the best idea would be to focus on stocks with a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report General Mills, Inc. (GIS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks