Hormel Foods Corporation (HRL), headquartered in Austin, Minnesota, is a leading global branded food company. With a market cap of $17.26 billion, Hormel 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 commitment to producing innovative, high-quality food products ensures long-term stability and fosters trust among consumers, retailers, and food service providers worldwide.
HRL shares are trading 19.8% below their 52-week high of $39.25, which they hit on Sep. 26, 2023. The stock has gained 2.7% over the past three months, underperforming the broader S&P 500 Index ($SPX), which has gained 4.7% over the same time frame.
In the longer term, HRL is down 2% on a YTD basis, and the shares have declined 19.1% over the past 52 weeks. In comparison, SPX has gained 19.9% in 2024 and rallied 32.4% over the past year.
To confirm its bearish trend, HRL has been trading below its 50-day and 200-day moving averages since mid-September.
On Sep. 4, Hormel Foods dropped over 7% following its report of Q3 net sales of $2.90 billion, falling short of the $2.95 billion consensus. The company also revised its full-year net sales forecast to $11.8 billion–$12.1 billion, down from the prior estimate of $12.2 billion–$12.5 billion.
Highlighting the contrast in performance, HRL’s competitor, McCormick & Company, Incorporated (MKC), has outperformed both HRL and the SPX. MKC has gained 21.6% on a YTD basis.
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 is $32.17, suggesting a premium of 2.2% to its current levels.
On the date of publication, Rashmi Kumari 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.
