General Mills stock has struggled since hitting a multi-month high Monday
Food manufacturer General Mills Inc (NYSE:GIS) is among the final companies to report earnings as the season winds down, with its fiscal third-quarter results set for release before the open on Wednesday, March 19. Analysts anticipate earnings per share (EPS) of 95 cents on $4.96 billion in revenue.
Last seen down 0.1% at $59.79, GIS has struggled since hitting a multi-month high of $64.95 on Monday and is now pacing for its fourth consecutive daily loss. Overhead pressure at the 120-day moving average has contributed to the stock’s 6% year-to-date decline.
Historically, earnings tend to bring rain, with General Mills stock falling or flat after five of its past eight earnings reports, averaging a shift of 2.6%. This time around, traders anticipate a larger-than-usual 6.5% move for the shares, regardless of direction.
There is plenty of room for upgrades ahead of the event, with 13 of the 18 covering brokerage firms sporting a "hold" recommendation. Meanwhile, shorts have been piling on, with short interest up 17.2% over the past two reporting periods. This accounts for 4.8% of the stock's total available float, or over five days' worth of pent-up buying power.
In the options pits, bulls have been stepping in. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock sports a 10-day call/put volume ratio of 3.38 that sits higher than 72% of annual readings.
Options might be a good way to weigh in on GIS, as it has tended to outperform options traders' volatility expectations during the past year. This is per its Schaeffer’s Volatility Scorecard (SVS) of 94 out of 100.