Hormel Foods stock: buy or sell?

HRL stock price: $48.26 -0.66% At close on February 18th, 2020

Updated on:
February 18th, 2020

4

After topping to all time highs on Friday, Hormel Foods slightly fell -0.66% today to $48.26. Tuesday session broke a green streak of 4 days.

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?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

These 2 buy setups match with Hormel Foods stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Hormel Foods stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't find any rating for HRL stock for the last month.

Hormel Foods stock analysis

Daily outlook

After reaching all time highs on Friday, Hormel Foods slightly fell -0.66% to $48.26.

After climbing for 4 days, Tuesday Hormel Foods slightly fell an unpleasant -0.66%, closing at $48.26. Since November when HRL stock price broke up the SMA200d line, it gained $7.22 (17.59%). From a daily perspective, HRL is in a short term uptrend after plotting its last bottom ($46.51, on February/6) higher than the previous bottom, and its last top ($48.86, on Friday) also over the previous top. Now trading in between its last bottom and last top HRL might consolidate in a plain range, waiting to break out over $48.86 or down under $46.51. On October, SMA100d and SMA200d crossed up triggering a rise of 13.21%. On Friday, HRL hit a new all time high, pushing higher than on Thursday tops. Check different trading setups that use ATHs as triggers.

HRL stock chart (daily)

Weekly outlook

Hormel Foods declined a lame -0.66% this week.

Hormel Foods stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Not so far away is the last all-time high Hormel Foods marked last week. Since price and SMA40w lines crossed up early November, HRL climbed $7.22 (17.59%). Since late September 2019 when SMA20w and SMA40w crossed up, HRL price gained $5.17 per share (12.00%).

HRL stock chart (weekly)

Hormel Foods stock price history

Hormel Foods IPO was on July 15th, 1985 at $0.00 per share1. Since then, HRL stock grew a inf%, with an average of inf% per year. If you had invested right after HRL's IPO a $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 Friday with a price of $48.86.

Hormel Foods stock price target

Nobody can reliably foresee how stock prices may evolve in the future. 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. You should not follow the analysts' HRL stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we have not found any price prediction for Hormel Foods stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

, Hormel Foods reported its latest financial data, aligned with analysts' consensus and published a $0.44 Earnings per Share. Unfortunately, reported EPS is not yet available in our database.
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

Compared to 2017, last anual sales report draw a beatiful increase of 4.13% to $9,545.70 M USD. Nonetheless, its profit margin (compared to sales) gained to 10.60%, that is $1,012.14 million.

Hormel Foods fiscal year ends in October, and to evaluate 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 stable a neutral 0.30%. Likewise, profit margin (net income/revenues) stayed steady 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 sales for 2019-Q1, a -6.51% less compared to previous quarter. Reported quarter earnings marked $241.43 million with a profit margin of 10.23%. Profit margin remained 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 growth and stepped up 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 buy shares of a stock, it's always worth to check its ownership structure.

Hormel Foods shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 48.30% of all shares.

In case of Hormel Foods stock, 46.12% 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$25.8 B
Total shares534.7 M
Float shares275.9 M
  - Institutional holdings (%)46.1%
  - Insider holdings (%)48.3%
Shares in short selling0.0%

Hormel Foods summary

Tuesday, February 18th, 2020
Open$48.40
Close$48.26
Day range$48.12 - $48.51
Previous close$48.58
Session gain-0.66%
Average true range$0.63
50d mov avg$45.91
100d mov avg$43.97
200d mov avg$42.35
Daily patternlt06a
Weekly pattern lt06a

Hormel Foods performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We compared Hormel Foods against in the following table:
Stock3m6m12m
HRLHormel Foods14.66%16.09%14.80%

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