Blue chips don’t get much bluer than this stock. It is a low-risk stock that consistently delivers dividends and has trended up steadily over the last decade no matter what the market has thrown at it.

This stock is none other than General Mills (GIS).

General Mills is one of the largest food companies in the world, and its brand names are instantly recognized by millions of consumers. I’m sure you’re familiar with their great cereal business which features all-American names like Cheerios and Wheaties. The company also owns Betty Crocker, Green Giant and Hamburger Helper. It’s hard to find a home in America that doesn’t have some product from General Mills.

But not all companies with name recognition are poised for success. After all, my first priority is to find fundamentally strong companies no matter what sector they are in or how popular they are. But it certainly helps to have that name recognition alongside top-notch business practices.

Here’s a concrete example: A few years ago, General Mills bought Pillsbury from Diageo. Normally, I don’t like big acquisitions because it’s too hard to merge corporate cultures, but in this case, I think General Mills made a very shrewd move. The Dough-Boy buy has dramatically increased General Mills presence in several product lines—not just in name recognition, but in profitability. The result is a firm foundation and steady returns that beat the market—precisely what I look for in my Blue Chip Growth stocks.

I’ll admit that it’s not as sexy as some high-tech start in Silicon Valley, but the difference is that General Mills turns out a consistent profit, year after year. You remember profits, don’t you? Let’s just say that Congress won’t have to bailout America’s distressed cereal companies anytime soon!

I don’t have to play guessing games with General Mills—with investing, I never take unnecessary risks. If other investors think General Mills is boring, fine—that just leaves more shares for smart buyers like you and me! (See also: "Balancing Risks & Rewards to Profit in This Market.")

Consider that since 1980 shares of General Mills are up over 2,000%. That performance is far ahead of the rest of the stock market. And that doesn’t include dividends that have a nice history of rising every year. In fact, General Mills has paid a dividend every year for 110 years. Best of all, the stock is down sharply in the past week, making it an even more attractive value.

Are you interested now? Good! Now let’s take a closer look at why General Mills continues to grow its earnings and sales, and why the stock will continue to move steadily upward in the months and even years ahead:

The PortfolioGrader Pro Advantage

If you enter the ticker GIS into my PortfolioGrader Pro stock-rating service, you’ll see that General Mills is rated "A – Strong Buy." The overall grade is based on General Mills’ Quantitative Grade, which is an A, and it’s Fundamental Grade, which is a B.

What do these grades mean? Well…

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The Quantitative Grade looks at how well the stock performs relative to its risk. This is where being a boring stock really helps because General Mills‘ daily fluctuations tend to be quite mild in comparison to the market. This is very important because it tells me that General Mills isn’t as risky as many other stocks. Also, when stocks have lower volatility, it often signals heavy buying from institutional investors. For all these reasons, the stock has a Quantitative Grade of A.

Now let’s look at the Fundamental Grade. That grade is based on the average of eight different variables: sales growth, earnings growth, change in operating margins, earnings momentum, earnings surprises, analyst revisions, cash flow and return-on-equity. General Mills is clearly strong in these categories according to its most recent earnings report.

For the quarter ending on August 24, General Mills reported operating earnings of 96 cents a share, beating Wall Street’s forecast of 87 cents a share by more than 10%. That explains its B grade for earnings surprises.

General Mills also raised its full-year earnings forecast to $3.81 to $3.85 per share from its earlier forecast of $3.78 to $3.83. This has led Wall Street analysts to revise their forecasts higher, so that explains the B grade for analyst revisions. (And as a side note, I have to say that I’m very impressed that General Mills has raised its earnings forecast so early in its fiscal year.)

The company’s earnings growth for the quarter was 19% over last year while sales growth was 14%. Both numbers are decent and rated Cs in PortfolioGrader. However, you’ll notice that earnings grew faster than sales, which means General Mills’ margins are expanding. It’s rated a B under operating margin expansion, which is very important because it signals that a company is gaining a stronghold on its market. They can charge more for their products and not lose market share. This is the Holy Grail to business!

You can see why I’m so enthusiastic about this company. Seeking companies with the strongest fundamentals is how I’ve managed to deliver market-beating profits consistently for my Blue Chip Growth subscribers, and General Mills is a perfect example of the type of stock I look for.

For more top stocks in specific sectors, be sure to register for PortfolioGrader Pro! I promise it won’t cost you a penny. And be sure to check out My Top 5 Stocks for October.

Buy General Mills

I expect another strong earnings report from General Mills, so now is the time to buy while the stock is still a bargain!

The company won’t report earnings again until a few days before Christmas, which means this is an excellent time to add shares. Another nice earnings surprise should result in a big jump for the stock and big profits for those who buy now. I currently rate General Mills an outstanding buy and have specific buy below pricing instructions for my Blue Chip Growth members.

General Mills is just one of many undervalued stocks that will soon emerge as market leaders. Louis Navellier’s Blue Chip Growth Buy List currently carries over 40 stocks. There’s no other list like this on Wall Street. If you sign up for Blue Chip Growth today, you can lock-in a risk-free one year subscription at 50% savings. Get started today!