General Mills Inc. (GIS): Today's Featured Food & Beverage Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

General Mills ( GIS) pushed the Food & Beverage industry higher today making it today's featured food & beverage winner. The industry as a whole closed the day up 0.7%. By the end of trading, General Mills rose 40 cents (1%) to $39.70 on average volume. Throughout the day, three million shares of General Mills exchanged hands as compared to its average daily volume of four million shares. The stock ranged in a price between $39.43-$39.86 after having opened the day at $39.51 as compared to the previous trading day's close of $39.30. Other companies within the Food & Beverage industry that increased today were: Tofutti Brands ( TOF), up 7.8%, John B. Sanfilippo & Son ( JBSS), up 6.2%, Reeds ( REED), up 5.6%, and Coca-Cola Hellenic Bottling Company S.A ( CCH), up 5.2%.
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General Mills, Inc. manufactures and markets branded consumer foods worldwide. The company also supplies branded and unbranded food products to the foodservice and commercial baking industries. General Mills has a market cap of $25.29 billion and is part of the consumer goods sector. The company has a P/E ratio of 15.3, equal to the average food & beverage industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 2.7% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate General Mills a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates General Mills as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the food & beverage industry could consider PowerShares Dynamic Food & Beverage ( PBJ) while those bearish on the food & beverage industry could consider PowerShares DB Agriculture Sht ETN ( ADZ).

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