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Hormel Foods Corporation (HRL)

Hormel Foods stock forecast: buy or sell

Close on Sep 28th, 2020
$48.96 0.00%
3 months performance
0.01%
Published: September 29th, 2020 - 7.52am EDT

Hormel Foods stock outlook

  • Hormel Foods stock slightly moved 0.25% to close at $48.96 on the stock market today, after 3 consecutive sessions in positive.
  • The stock is configuring an uptrend pattern since late May, when it bottomed at $44.68. This uptrend marked a 9.58% gain
  • Hormel Foods Corporation produces and markets various meat and food products to retail, foodservice, deli, and commercial customers in the United States and internationally.

Important:
The viewpoints written in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this text does not know the particular circumstances of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are provided for learning reasons only

Hormel Foods stock charts

Should I buy Hormel Foods stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick 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

Is HRL stock a buy?

Currently, Hormel Foods stock matches one trading strategy:

Uptrend buy setup

Hormel Foods stock is in an uptrend since in late May that so far has marked an amazing 10% gain. Price marked a local bottom in this uptrend at $47.40 last Wednesday, and since then it bounced up a 3.29%. Breaking out over $52.97 - it's last top - will be a good entry point if Hormel Foods resumes the uptrend. If you decide to enter this trade, the suggested stop loss is at $47.67

Buy setupBuy pointStop lossRisk
Uptrend buy setup$52.97$47.6710%

Should I sell Hormel Foods stock?

When you are a novel trader and you own stock shares with some profit, it's really difficult to decide the good moment to sell and get your profits. Similarly to when we have to buy shares, deciding when is appropiate time to sell is not a random decision, and we must use our own trading style. We like very simple setups to guide us on when is a good time to sell our shares. Be aware that these setups are not intended for selling short Hormel Foods stock

A golden rule is that you should not keep a trading operation that yields higher than expected losses at the time of purchase. When to sell shares always has to be dictated by the stop-loss (automatic or manual)

Is it time to sell Hormel Foods stock?

Currently, Hormel Foods stock doesn't match any of our preferred sell setups, so if you own Hormel Foods stock and your operation is in profit probably is not time to sell now

Analysts' recommendations to buy or sell Hormel Foods stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, just one rating was published for Hormel Foods

Hormel Foods ratings

Brokerage firmRating
Sep 8th, 2020
Seaport Global Securities Neutral

Technical analysis

Hormel Foods shares started an uptrend in late May, and grew an amazing 9.58%. The price action shows higher peaks and higher lows, and along the way gave some buying opportunities for those who wanted to enter. Latest low was last Wednesday, when price bounced at $47.40. Now, the price trades in a consolidation between its last top ($52.97) and its last bottom ($47.40)

SMAs overview

Moving averages are simple tools for traders to measure market momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

HRL SMAs chart

Supports and resistances

Market investors use supports and resistances as a way to spot price points in the stock price action that tend to work as glass ceiling, containing the price of a stock to move up or down. Supports are levels where the price may stop as it falls. Price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down the support, it will probably continue falling until approaching another support level. In contrast, a resistance level is where the price tends to find a curb as it moves up. Again, the price is more likely to "bounce off" at this level, and if it finally breaches this level, it will climb easily until it hits the next resistance

The current resistances are:

  • R1: $49.05 (0.18% above)
  • R2: $49.15 (0.39% above)
  • R3: $50.58 (3.31% above)
  • The current supports are:

  • S1: $48.82 (-0.29% below)
  • S2: $48.38 (-1.18% below)
  • S3: $47.40 (-3.19% below)
  • Bollinger bands

    This is an indicator that was created in the 1980s by John Bollinger. It is composed of 3 lines that are drawn superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Since the price broke down the lower band last Wednesday, the price bounced off by 3.29%. The price is trading very close to the lower Bollinger band, poiting some level of oversold in recent sessions. This is not a buy signal, as price can trade in these levels for many days and weeks

    HRL RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. It is intended to map the current and past strength or weakness of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI moves in a range between 0% and 100%. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in 1978

    The RSI crossed up the oversold level of 30 last Thursday after just being in the oversold zone for 1 day (what can be considered a strength sign). The RSI reading yesterday was 42.93

    HRL RSI chart

    Earnings and financials

    Hormel Foods had the earnings event and released the 2nd-quarter report in late August. Hormel Foods reported 2nd-quarter earnings of $0.37 per share on revenue of $2.4 billion. The analysts estimate was $0.35 per share on revenue of $2.4 billion.

    For comparison, the EPS for the same quarter last year was $0.37, so reported EPS means 0%. Looking at revenue, figures slightly moved compared to $2.3B same quarter last year.

    Hormel Foods will host the Q3 earnings call next November. Forecasted earnings of %s per-share for this quarter is $0.44. Earnings reporting day has a more than usual risk for stock investors as the data published can soar and sink the stock price with lower liquidity and not honouring your buy or stop-loss orders. It's always good to review company's website to confirm time and details on the earnings call and the earnings report.

    HRL revenues and profits chart