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.
