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Investing.com - Mizuho (NYSE:MFG) maintained its Neutral rating and $60.00 price target on General Mills (NYSE:GIS) following the company’s fourth-quarter earnings report. The stock, currently trading near its 52-week low of $50.68, offers a compelling 4.74% dividend yield, according to InvestingPro data.
The food manufacturer posted a modest earnings per share upside in its fourth quarter, benefiting from favorable corporate expenses and improvements in market share, with 64% of North American Retail top 10 categories growing or holding share positions. With annual revenue of $19.49 billion and a P/E ratio of 11.17, General Mills maintains a strong market presence. InvestingPro analysis reveals 8 additional key insights about the company’s financial health and market position.
General Mills’ fiscal year 2026 guidance reflected weaker operating income expectations due to continued reinvestment and "value investments" across approximately 66% of its North American portfolio, according to Mizuho.
The research firm noted that category growth is expected to remain below long-term levels, comparable to fiscal year 2025, amid lingering volatility and consumer challenges, reinforcing market concerns about increasing price competition as General Mills seeks to return to volume growth.
Mizuho expressed cautious optimism for growth acceleration throughout fiscal year 2026, citing General Mills’ positive volume response to price adjustments and incremental cost savings, but maintained it remains too early to buy the dip in the stock.
In other recent news, General Mills reported its fiscal fourth-quarter 2025 earnings, revealing an earnings per share (EPS) of $0.74, surpassing the forecast of $0.71. Revenue for the quarter met expectations at $4.6 billion. Despite the earnings beat, the company’s stock experienced a decline, reflecting concerns over strategic reinvestments. General Mills plans significant investments in its Fresh Pet food line, aiming to expand this segment significantly over the next decade. Barclays (LON:BARC), BofA Securities, and Jefferies have all lowered their price targets for General Mills, citing various concerns, including execution risks and market competitiveness. However, RBC Capital upgraded the company’s stock rating from Sector Perform to Outperform, expressing confidence in the company’s fiscal year 2026 earnings guidance. The national launch of General Mills’ Blue Buffalo fresh pet food line is being closely watched by investors, with the company leveraging learnings from previous tests to inform this broader rollout strategy. General Mills remains committed to strategic investments and volume growth initiatives, particularly in its North America Retail segment.
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