Last Updated: 13 Sep 2024
Executive Summary
Hormel Foods Corporation (HRL) is a leading manufacturer and marketer of branded food products. The company has a strong track record of financial performance, with consistent revenue and earnings growth. Hormel is well-positioned to continue its growth in the future, driven by its strong brands, innovative products, and efficient operations.
Company Overview
Hormel Foods Corporation was founded in 1891 and is headquartered in Austin, Minnesota. The company has a global presence, with operations in over 50 countries. Hormel's product portfolio includes a wide range of food products, including meat, poultry, cheese, and other food products. The company's brands include SPAM, Hormel, Jennie-O, and Skippy.
Fundamental Analysis
Hormel Foods Corporation has a strong financial profile. The company has a market capitalization of $17.3 billion and a trailing price-to-earnings ratio of 22.11. Hormel's revenue and earnings have grown steadily in recent years. In fiscal 2023, the company reported revenue of $11.98 billion and diluted EPS of $1.43. Hormel's profit margin is 6.52% and its operating margin is 8.94%. The company's return on assets is 5.16% and its return on equity is 10%.
Technical Analysis
Hormel Foods Corporation's stock price has been trading in a range between $28.02 and $38.23 over the past 52 weeks. The stock is currently trading at $31.62, which is below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 45.6, which indicates that the stock is neither overbought nor oversold.
Short Term Outlook
Hormel Foods Corporation's stock price is expected to remain range-bound in the short term. The stock is currently trading below its moving averages and its RSI is neutral. However, the company's strong financial performance and positive analyst sentiment suggest that the stock could break out of its range and move higher in the future.
Long Term Outlook
Hormel Foods Corporation is well-positioned for long-term growth. The company has a strong brand portfolio, a wide distribution network, and a history of innovation. Hormel is also expected to benefit from the growing demand for protein products. As a result, the company's stock is expected to continue to perform well over the long term.
Analyst Recommendations
The majority of analysts have a hold rating on Hormel Foods Corporation's stock. However, there are a few analysts who have a buy rating on the stock. The consensus price target for the stock is $32.35, which represents a potential upside of 2.28% from the current price.
