Inflationary resilience is a hallmark of defensive stocks. Investors who want to hedge against inflationary pressures can bet on defensive stocks. General Mills An option is (NYSE:). However, considering GIS’ weak momentum, is it worth betting on the stock now? You can read the rest of this article to learn more. General Mills, Inc., Minneapolis, Minn., makes and sells branded consumer products worldwide. The company operates in five segments: North America Retail; Convenience Stores & Foodservice; Europe & Australia; Asia & Latin America; and Pet. The stock has gained a mere 2.6% in price over the past year and 6.7% year-to-date to close yesterday’s trading session at $62.49. GIS’ momentum has been relatively weak.

Citi analysts Wendy Nicholson & Abigail Lake said that the company had “underperformed” the market, but demonstrated “stronger execution than many other peers in recent months.” GIS also increased its target price for the stock. GIS delivered better-than-expected financials in its last reported quarter, and Citi analysts expect the stock to “continue to improve upon its market-share gains while raising prices to offset inflation.”

The current rising inflation can be attributed in part to disruptions in supply chains at a moment when the economy is recovering and demand is increasing. These conditions are favorable for consumers who have defensive stocks. In September 2021, global food prices rose by nearly 33% year over year and more than 3.3% annually since July. They have risen to the highest point since 2011. GIS will benefit significantly from rising food costs. GIS stocks should be a major investment target because they perform better under inflationary conditions.

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