GIS is a buy!
Shares of General Mills (GIS) have been terrible to own lately. But they're finally finding support at a major support level (breakout from 2012-2013) at about $41.
They recently acquired Blue Buffalo Pet Foods, which should help drive growth to the bottom line, as the humanization of pets continues to accelerate.
At current prices, it's also sporting a solid 4.4% dividend (54% payout ratio, 5.2% 5-year annual average dividend growth, but new revenue/income streams should give them the ability to grow dividends more significantly going forward).
As a "consumer staple," it's no doubt out of favor... and that makes me like it even more! Buy when others sell, sell when other buy. Right?! :)
The valuation is attractive at 14x 2018's estimated E.P.S., and again, the new revenue/income streams from recent acquisitions should help raise E.P.S. estimates in the next few quarters.
To be fair in my analysis, the PEG ratio is a bit high at 2.3. Also, I've noticed some insider selling, so I'm curious about that. But insiders sell for a ton of reasons, so in and of itself, its not a reason to be scared away, just something to watch.
Option open interest is 22% higher than average, and favors bulls, with 1.2 calls for every one 1 put. I also wanted to point out that the MACD experienced a bullish cross (on weekly chart), so any dips from here should be bought!
Long this name as a core position in a long-term account, as well as long September calls in my trading account.
They recently acquired Blue Buffalo Pet Foods, which should help drive growth to the bottom line, as the humanization of pets continues to accelerate.
At current prices, it's also sporting a solid 4.4% dividend (54% payout ratio, 5.2% 5-year annual average dividend growth, but new revenue/income streams should give them the ability to grow dividends more significantly going forward).
As a "consumer staple," it's no doubt out of favor... and that makes me like it even more! Buy when others sell, sell when other buy. Right?! :)
The valuation is attractive at 14x 2018's estimated E.P.S., and again, the new revenue/income streams from recent acquisitions should help raise E.P.S. estimates in the next few quarters.
To be fair in my analysis, the PEG ratio is a bit high at 2.3. Also, I've noticed some insider selling, so I'm curious about that. But insiders sell for a ton of reasons, so in and of itself, its not a reason to be scared away, just something to watch.
Option open interest is 22% higher than average, and favors bulls, with 1.2 calls for every one 1 put. I also wanted to point out that the MACD experienced a bullish cross (on weekly chart), so any dips from here should be bought!
Long this name as a core position in a long-term account, as well as long September calls in my trading account.
บันทึก
Support at $41 has continued to hold, and therefore I added more to my long-term position. I'll continue to add on weakness and have a stop set under the recent lows of $41.01.
คำจำกัดสิทธิ์ความรับผิดชอบ
ข้อมูลและบทความไม่ได้มีวัตถุประสงค์เพื่อก่อให้เกิดกิจกรรมทางการเงิน, การลงทุน, การซื้อขาย, ข้อเสนอแนะ หรือคำแนะนำประเภทอื่น ๆ ที่ให้หรือรับรองโดย TradingView อ่านเพิ่มเติมที่ ข้อกำหนดการใช้งาน
คำจำกัดสิทธิ์ความรับผิดชอบ
ข้อมูลและบทความไม่ได้มีวัตถุประสงค์เพื่อก่อให้เกิดกิจกรรมทางการเงิน, การลงทุน, การซื้อขาย, ข้อเสนอแนะ หรือคำแนะนำประเภทอื่น ๆ ที่ให้หรือรับรองโดย TradingView อ่านเพิ่มเติมที่ ข้อกำหนดการใช้งาน