General Mills (NYSE: GIS): Will the good times roll?

Estimates: $0.43/$0.413/$0.395

Shares of GIS have thrived over the past couple months as its stable earnings and modest 2.6% dividend proved the perfect store of wealth for PM’s looking to not get shaken out of an increasingly shaky market.  As should be expected, a defensive stock like GIS will outperform during times of uncertainty to the downside.  Besides a recent hiccup in action due to a false report leaked out of PR Newswire, everything has been on the up-and-up for GIS, which just hit new post-recession highs of $39 earlier this month.

GIS broke out of a base dating back to Summer ’08 in early January but only truly broke out to new highs earlier this month.  A solid report may move shares even higher.  GIS remains relatively well situated so long as the market continues to suffer from a significant risk overhang, pushing investors to search for safe havens.  However, we should note that if the risk-on trade were to return in full effect, GIS would likely fall under some pressure, even if there were no actual stock-specific bad news.

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