Displaying items by tag: general mills

Wednesday, 13 May 2020 12:28

Why Grocery Stocks are a Good Bet

(Chicago)

The early thinking about grocery stocks was that the big surge in demand at the start of the COVID lockdown was just a flash in the pan. However, as earnings and guidance is emerging from companies in the space (like General Mills), it is becoming apparent that demand for groceries because of a heightened preference for home cooking seems likely to stick around for a while.


FINSUM: We agree with the fundamental thesis here. Until we cure COVID, people are going to stay worried about public spaces, including restaurants. The trick to picking stocks is to understand where each company is getting its revenue. For instance, General Mills does a lot of sales through grocery stores so its stock is rising, but Molson Coors does a large share of its sales through bars and restaurants, so its stock is falling.

Published in Eq: Dividends
Monday, 02 April 2018 09:41

3 Great Value Stocks

(New York)

Despite the recent falls in the market, stocks still look quite expensive, and are, historically speaking. With that in mind, many investors may be looking for stocks with a strong value proposition. Barron’s has put out a piece choosing three: General Mills, Tractor Supply, and UPS. In the case of General Mills, the panic over grocery wars and pre-packaged food looks overdone, and the company is actually performing well in a number of areas. Tractor Supply has done very well historically, but its growth rate has slowed recently, but this may because of two mild winters, and not a sign of trouble to come. UPS has declined because of an announcement of increased capital spending, but given the health of the underlying business, it seems too cheap to pass up, says Barron’s.


FINSUM: These seem like very knowledgeable picks. We particularly like UPS, which is trading at a historically low P/E ratio right now.

Published in Eq: Large Cap

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