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

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 lower today making it today's featured Food & Beverage laggard. The industry as a whole closed the day up 0.4%. By the end of trading, General Mills fell $0.82 (-1.6%) to $49.94 on average volume. Throughout the day, 4,213,259 shares of General Mills exchanged hands as compared to its average daily volume of 4,114,500 shares. The stock ranged in price between $49.74-$50.84 after having opened the day at $50.73 as compared to the previous trading day's close of $50.76. Other companies within the Food & Beverage industry that declined today were: Calavo Growers ( CVGW), down 4.1%, Andersons ( ANDE), down 4.0%, Bridgford Foods Corporation ( BRID), down 2.9% and SodaStream International ( SODA), down 2.2%.
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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 $32.0 billion and is part of the consumer goods sector. The company has a P/E ratio of 18.2, above the S&P 500 P/E ratio of 17.7. Shares are up 25.6% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate General Mills a buy, no analysts rate it a sell, and 5 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 solid stock price performance, revenue growth, reasonable valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Omega Protein Corporation ( OME), down 16.5%, Crumbs Bake Shop ( CRMB), down 4.4%, American Lorain ( ALN), down 3.8% and Agria Corporation ( GRO), down 3.7% , were all gainers within the food & beverage industry with Green Mountain Coffee Roasters ( GMCR) being today's featured food & beverage industry leader.

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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