General Mills (GIS) manufactures and markets branded consumer foods in the United States and internationally, notes growth and dividend expert Brit Ryle, editor of The Wealth Advisory.

It offers ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, pizza, snacks, stable and frozen vegetables, and ice cream and frozen desserts, as well as various organic products, granola bars, and cereal.

Although industry trends have been weaker for processed and packaged foods, GIS is a rose among thorns thanks to its flawless execution and streamlined operations.

Management at General Mills has managed to increase earnings steadily even in the face of falling revenues. That’s some pretty impressive cost-cutting right there. And they’re not stopping anytime soon.

In recent news, General Mills executives are talking with Amazon (AMZN) about selling food online. Once the company starts working with Amazon to sell its products online, we should start to see a bunch of fresh revenues rolling in.

And that will be coupled with a reduction in shipping costs, since GIS will be able to send its food for an entire region to Amazon’s distribution centers.

Also, there’s a possibility that GIS could be the next target for a takeover from Warren Buffett’s 3G Capital. In fact, General Mills is at the top of the list of potential purchases.

The company gets an earnings grade of A-, as it has beaten estimates in three of the last four quarter.  It’s got a great valuation in comparison to its peers and would make a perfect addition to 3G’s portfolio. General Mills is a buy anywhere under $60. The 12-month price target is $75.

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