Hormel Foods stock: buy or sell?

HRL stock price: $44.96 0.25% At close on March 27th, 2020

Updated on:
March 27th, 2020

4

After boosting a super good 6.49% on March 26th, Hormel Foods closed yesterday at $44.96 and remained stable a slightly fine 0.25%. On Wednesday HRL collapsed a scary -6.94%.

Hormel Foods Corporation produces and markets various meat and food products in the United States and internationally. The company operates through five segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, Specialty Foods, and International & Other.

Should I buy Hormel Foods stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Following a trading plan helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Hormel Foods stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Hormel Foods stock a buy?

Banks and financial institutions publish stock ratings everyday. Unfortunately, we couldn't find any rating for HRL stock for the last month.

Hormel Foods stock analysis

Daily outlook

After crossing up the SMA line of 200d yesterday, Hormel Foods shares closed today at $44.96stable a 0.25%}.

After crossing up the SMA line of 200d yesterday, Hormel Foods shares closed today at $44.96 a 0.25%}. HRL is retaking the upward trend marking a new rising bottom heading to break out over $51.53. On Mar/18, HRL hit new all time highs, pushing higher previous ATH of $48.86 recorded on February/14. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

HRL stock chart (daily)

Weekly outlook

After boosting an exceptional 6.03% in a week last week, Hormel Foods closed this week at $44.96 and stayed constant a disappointing -0.35%. Late February HRL plunged a bloodcurdling -7.62% in just one week.

Not so far away is the last all-time high Hormel Foods marked last week. Last week HRL price bounced up over the SMA of 40 weeks that acted as support stopping new slides. Since late September 2019 when SMA20w and SMA40w crossed up, HRL price gained $1.87 per share (4.34%).

HRL stock chart (weekly)

Hormel Foods stock price history

Hormel Foods stock went public on July 15th, 1985 with a price of $0.001. Since then, HRL stock surged a inf%, with an average of inf% per year. If you had invested $1,000 in Hormel Foods stock in 1985, it would worth $inf today.

1: Adjusted price after possible price splits or reverse-splits.

Hormel Foods stock historical price chart

HRL stock reached all-time highs on Mar/18 with a price of $51.53.

Hormel Foods stock price target

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we have not detected any price forecast for Hormel Foods stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

After posting its last earnings report , Hormel Foods . As soon as we get its posted EPS from the earnings report, we will update this review.
HRL earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.39n/a
2017-Q3-n/a0.34n/a
2017-Q42017-11-210.40.412.5%
2018-Q12018-02-220.440.440.0%
2018-Q22018-05-240.450.44-2.2%
2018-Q32018-08-230.380.392.6%
2018-Q42018-11-200.460.5110.9%
2019-Q12019-02-210.430.442.3%
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Hormel Foods annual turnover gained a good 4.13% to $9,545.70 million dollars from $9,167.52 marked in 2017. Slightly worse, its earnings margin (compared to revenues) appreciated to 10.60%, that is $1,012.14 million.

Hormel Foods presents anual results in October, and to compare its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Hormel Foods TTM sales up to January 2019 were $9,574.76 and earnings $950.46 M USD. If we compare this TTM figures with the last reported annuality, we can esteem Hormel Foods business evolution since October 2018: Annual revenues up to January, compared to lastest yearly report, remained steady a tight 0.30%. In line, profit margin (net income/revenues) stayed stable at 10.60%.

HRL annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$8,750 M-$526 M6.0%-
2014$9,320 M6.51%$603 M6.5%14.53%
2014$9,316 M-0.04%$603 M6.5%0.00%
2015$9,260 M-0.60%$686 M7.4%13.84%
2015$9,264 M0.04%$686 M7.4%0.00%
2016$9,520 M2.76%$890 M9.3%29.73%
2016$9,523 M0.03%$890 M9.3%0.00%
2017$9,170 M-3.71%$847 M9.2%-4.87%
2017$9,168 M-0.03%$847 M9.2%0.00%
2018$9,546 M4.13%$1,012 M10.6%19.53%
TTM $9,575 M0.30%$950 M9.9%-6.09%

Quarterly financial results

Hormel Foods posted $2,360.35 million in revenues for 2019-Q1, a -6.51% decline compared to previous quarter. Reported quarter income marked $241.43 million with a profit margin of 10.23%. Profit margin stayed constant a -0.13% compared to previous quarter when profit margin was 10.35%. When comparing turnover to same quarter last year, Hormel Foods sales marked a tiny increase and grew a 1.25%.
HRL quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$2,190 M-$211 M9.6%-
2017-Q3$2,210 M0.91%$183 M8.3%-13.47%
2017-Q4$2,493 M12.79%$218 M8.8%19.53%
2018-Q1$2,331 M-6.47%$303 M13.0%38.94%
2018-Q2$2,331 M-0.03%$237 M10.2%-21.68%
2018-Q3$2,359 M1.23%$210 M8.9%-11.43%
2018-Q4$2,525 M7.02%$261 M10.4%24.34%
2019-Q1$2,360 M-6.51%$241 M10.2%-7.64%

Hormel Foods ownership

When you are planning to invest in a company, it's worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Hormel Foods, 48.03% of all outstanding shares are owned by its staff.

In case of Hormel Foods stock, 47.44% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for HRL stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Hormel Foods:

HRL
Market cap$24.2 B
Total shares537.8 M
Float shares279.3 M
  - Institutional holdings (%)47.4%
  - Insider holdings (%)48.0%
Shares in short selling0.0%

Hormel Foods summary

Friday, March 27th, 2020
Open$44.25
Close$44.96
Day range$44.11 - $46.23
Previous close$44.85
Session gain0.25%
Average true range$3.40
50d mov avg$45.57
100d mov avg$44.73
200d mov avg$43.02
Daily patternlb02a
Weekly pattern

Hormel Foods performance

To measure stock performance is always good to benchmark with competitors or related stocks. In the following table, we compare Hormel Foods performance to :
Stock3m6m12m
HRLHormel Foods-0.13%4.34%2.53%

Hormel Foods competitors

Unfortunately, we could not find any public company that could be defined as Hormel Foods competitor. This doesn't mean Hormel Foods does not have any competitor in the market, it's just we could not detected it.

    Latest Hormel Foods stock news