With a market cap of $17.4 billion, Hormel Foods Corporation (HRL) is a leading global branded food company. The Austin, Minnesota-based company offers a wide range of high-quality food products to consumers, including meats, snacks, and meal solutions.
Companies valued at $10 billion or more are classified as "large-cap" stocks, and Hormel Foods exemplifies this with its strong market position and consistent growth in the global food industry. The company's dedication to creating innovative, high-quality food products ensures long-term stability and builds trust with consumers, retailers, and food service providers globally.
HRL shares are trading 14.1% below their 52-week high of $36.86, which they hit on May 20. The stock has plunged marginally over the past three months, underperforming the broader Nasdaq Composite ($NASX), which has surged 9.1% over the same time frame.
In the longer term, HRL is down 1.3% on a YTD basis, and the shares have surged marginally over the past 52 weeks. In comparison, NASX has gained 30.4% in 2024 and rallied 32.4% over the past year.
HRL has been trading below its 200-day moving average for a couple of recent trading sessions but above its 50-day moving average since late November.
On Dec. 4, Hormel Foods announced its Q4 earnings results, and its shares edged up 2.7% in the following trading session. While its adjusted EPS of 42 cents fell short of the market’s expectations, its revenue of $3.14 billion matched Street forecasts. Hormel expects FY25 earnings in the range of $1.58 to $1.72 per share, with revenue in the range of $11.9 billion to $12.2 billion.
Highlighting the contrast in performance, HRL’s competitor, McCormick & Company, Incorporated (MKC), has outperformed HRL. MKC has gained 17.8% over the past year.
Given the stock's weak recent price performance, analysts are cautious about HRL's prospects. The stock has a consensus rating of "Hold" from nine analysts in coverage. The mean price target of $32.28 implies a premium of 1.9% to its current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- Nvidia Short Put OTM Yields are Over 2.5% for Less Than One Month to Expiry
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