Now looks like a solid opportunity to buy GIS on the dip
As volatility grasps Wall Street, investors are looking for solid entry points into the market. One stock in particular that stands out as an interesting portfolio addition this month is General Mills, Inc. (NYSE:GIS). The security has recently pulled back from its Jan. 14, five-year high of $69.95, though it still sports firm support at the 100-day moving average, which has been in place since October. Last seen up 1.4% to trade at $67.71, the security also stands out as one of the 25 best performers in March, going back 10 years.
To be more specific, GIS just appeared on Schaeffer's Senior Quantitative Analyst Rocky White's list of stocks on the S&P 500 Index (SPX) that averaged the highest March returns over the last decade. General Mills stock averaged a 4.2% one-month return, with eight of these months positive. A move from its current perch would place the equity above the $70 mark for a fresh five-year peak.
An unwinding of pessimism among the brokerage bunch could create more tailwinds for General Mills stock. Of the 10 analysts in coverage, six still call the equity a tepid "hold" or worse, while the 12-month consensus target price of $66.01 is a 2.5% discount to current levels. This leaves plenty of room for upgrades and/or price-target hikes.
Short-term options traders already lean bullish. This is per the security's Schaeffer's put/call open interest ratio (SOIR) of 0.39, which stands higher than just 7% of readings from the past 12 months. This means short-term options traders have rarely been more call-biased.