General Mills (NYSE: GIS) can provide a hedge if volatility continues to plague the S&P 500. The company is amid a business transformation telegraphed in its price action, which is set up for a significant reversal after more than a year of lackluster performance.
The transformation includes selling its yogurt business, which will lighten the portfolio and shore up the fortress balance sheet. This will allow management to focus on core markets, international growth, and local gems that drive margin while providing steady capital returns.
The bonus is the stock beta. General Mills has trades with a 5-year beat of 0.1 and a 2-year beta of -.2, suggesting little to no correlation to the S&P 500; if the broad market falls, General Mills trends will be unaffected and may even get an added boost from a flight to safety.
General Mills Post Earnings Dip Is A Buying Opportunity That Won't Last Long
General Mills share prices fell following the FQ1 release, opening a buying opportunity that will likely last only a short time. The results and guidance were good, with Q1 performance being better than expected, and guidance was reaffirmed. The problem is that Q1 strength didn't carry through to the guidance, suggesting the remainder of the year could be tepid relative to expectations. However, the $4.85 billion in revenue is down only 1% ...
