General Mills Rises 1.13% on 34.23% Volume Surge to 224th Rank Despite Strong Sell Outlook

Generated by AI AgentAinvest Market Brief
Tuesday, Aug 19, 2025 7:41 pm ET1min read
GIS--
Aime RobotAime Summary

- General Mills (GIS) shares rose 1.13% on August 19, 2025, with a 34.23% surge in trading volume, ranking 224th in market activity despite a Zacks Rank #5 (Strong Sell).

- Declining organic sales (-3% YoY) and a 340-basis-point margin contraction to 32.4% highlight ongoing profitability challenges amid weak pricing and volume trends.

- CEO Jeff Harmening aims to revive growth through fiscal 2026 strategic investments, but negative earnings revisions and underperformance vs. S&P 500 (-26% vs. +17%) persist.

On August 19, 2025, General MillsGIS-- (GIS) traded with a volume of $0.42 billion, a 34.23% increase from the previous day, ranking 224th in market activity. Shares closed up 1.13%, bucking broader analyst pessimism.

Analysts have assigned GISGIS-- a Zacks Rank #5 (Strong Sell), reflecting bearish sentiment amid declining sales and profitability. Organic net sales fell 3% year-over-year in the latest quarter, driven by weaker volumes and an unfavorable pricing mix. Gross margins contracted 340 basis points to 32.4%, while operating profit dropped 35% to $504 million. Despite these challenges, CEO Jeff Harmening expressed confidence in fiscal 2026 plans to reinvigorate growth through strategic investments and operational focus.

Earnings estimate revisions remain negative, compounding near-term risks. GIS has underperformed the S&P 500, down 26% over the past year compared to the index’s 17% gain. The company’s next earnings report, scheduled for mid-September, is expected to feature similarly bearish sales outlooks, according to recent revisions.

A backtest of a strategy buying the top 500 stocks by daily trading volume and holding them for one day yielded a total profit of $2,940 from December 2022 to August 2025. The strategy also recorded a maximum drawdown of -$1,960, indicating a volatile but ultimately positive outcome with a peak-to-trough decline of 19.6%.

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