General Mills Holds Firm in a Challenging EnvironmentBy Ion Jauregui – Analyst at ActivTrades
General Mills (Ticker AT: GIS.US), one of the U.S. food industry giants, has reported results that show resilience despite difficulties in its main market. In North America, where much of its business is concentrated, volumes declined by 16 percentage points, reflecting weaker consumer demand and competitive pressure. Even so, the company has chosen to maintain its annual guidance, which has been interpreted as a sign of confidence in its ability to deliver.
In the quarter, net sales fell 6.8% to $4.52 billion, a negative figure but one that still came in better than analyst consensus expectations. This detail helped soften the market reaction, which could have been more severe.
On the positive side, the performance of the U.S. pet food division stood out, rising 6% and confirming this segment as a key growth driver for the company. The international business also showed strength, advancing 6%, which helps diversify risk against the slowdown in its domestic market.
From an investment perspective, General Mills remains a defensive stock within the consumer staples sector, supported by a solid brand portfolio and a geographic diversification strategy that provides stability. However, the decline in North American volumes remains a warning sign, as it sets the tone for what could be a year of margin pressure.
Technical Analysis of General Mills (Ticker AT: GIS.US)
Since May 2023, General Mills has been in a clear downtrend, with a brief pause in September 2024 and subsequent failed recovery attempts in March and April 2025. Since July, the stock has been in a consolidation phase, trading in a narrow range with support at $49.72 and immediate resistance at $51.04, reflecting short-term indecision.
Key technical levels to watch are:
Critical supports: $48.29 (yearly low) and $46.36 (previous low), which represent key areas to hold in order to avoid further deterioration in price action.
Relevant resistances: a breakout above $56.38 could pave the way toward $65.94, marking a shift into a more constructive bullish scenario.
As for indicators, the RSI remains in neutral territory, reflecting the absence of overbought or oversold conditions, while the MACD is beginning to show signs of recovery from negative territory, suggesting a potential short-term turnaround.
Meanwhile, the ActivTrades US Market Pulse currently points to an extreme Risk-On environment in the U.S., characterized by strong appetite for risk assets, broad-based equity gains, and declines in safe-haven assets. However, this wave of optimism contrasts with the defensive nature of General Mills, which historically performs better in periods of greater uncertainty.
General Mills Holds Its Ground as a Defensive Play
General Mills maintains its profile as a defensive stock, backed by a diversified portfolio and growth drivers such as its pet food and international businesses. Nevertheless, the drag from North American volumes and margin pressure calls for caution.
Technically, the stock appears to have found a floor and is currently in neutral territory, awaiting a decisive breakout. As long as it holds above its critical supports, the likelihood of a rebound toward resistance levels remains plausible, though only a breakout above $56.38 would confirm a more solid trend reversal.
In a market environment dominated by extreme risk appetite, General Mills may take a backseat compared to more cyclical or growth-oriented assets. Even so, it remains an attractive option for investors seeking stability and exposure to the consumer staples sector.
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