05-08-2018, 10:03 PM
GIS usually trades between 14 and 19 times earnings. Even during the worst of the financial crisis, GIS managed to keep its p/e above 13. It's hard in today's market to find a quality stock trading near its average historic multiple, so GIS caught my eye as well. Although I think that at around $46, GIS would be fairly valued based on its p/e history. And the BUFF acquisition was a bit pricey, but will prove a good deal over time. The pet business is where the growth is now a days. Food and snacks has too much competition and that's what's hurting them on margins.