Hormel Foods stock: buy or sell?

HRL stock price: $45.34 -0.92% At close on December 6th, 2019

Updated on:
December 6th, 2019

5

Hormel Foods shares topped new all time highs again today, marking to $45.84. Shares ended at $45.34 and depreciated -0.92%.

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?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. That's why is so important to define your own trading plan that matches with your character as inversor. 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 posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 5 ratings published for HRL stock in the last 30 days.

The general sentiment of these ratings is bearish for HRL stock, with 2 negative ratings.
Is HRL a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-6-12Edward JonesBuyHold
2019-4-23JPMorgan Chase & Co.NeutralUnderweight
2019-4-23Goldman Sachs GroupNeutralSell
2019-3-4Stephensn/aEqual Weight
2019-2-21Jefferies Financial Groupn/aHold

Hormel Foods stock analysis

Daily outlook

Shares of Hormel Foods closed today at $45.34 after marking a new all time high ($45.84) even it couldn't close with gains and depreciated a lame -0.92%.

Even closing lower ($45.34, -0.92%), Hormel Foods touched new all time high at $45.84. Since price and SMA200d lines crossed up on Nov/4, HRL climbed $4.08 (9.89%). Since last October when SMA100d and SMA200d crossed up, HRL price gained $2.48 per share (5.79%). From a daily perspective, HRL is in a short term uptrend after plotting its last bottom ($41.33, on November 12th) higher than the previous bottom, and its last top ($45.79, on Dec 4th) 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 $45.79 or down under $41.33.

HRL stock chart (daily)

Weekly outlook

Hormel Foods gained 1.82% this week and touched a new all time high at $45.84.

Since price and SMA40w lines crossed up early November, HRL climbed $4.08 (9.89%). Since SMA20d and SMA40w crossed up late September, HRL price climbed $2.02 per share (4.66%).

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 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 today with a price of $45.84.

Hormel Foods stock price target is $44.00

Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. 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. Currently, only 1 price forecast for Hormel Foods stock was published in the last month:
HRL stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-2-21Jefferies Financial GroupReiteratesn/a$44.00-
(in average)$0.00$44.000.0%

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Hormel Foods matched the forecasts of the analysts and posted an EPS of $0.44 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

In 2018, Hormel Foods annual sales raised a beatiful 4.13% to $9,545.70 M USD from $9,167.52 marked in 2017. However, its income margin (compared to revenues) inched to 10.60%, that is $1,012.14 million.

To have an up to date picture of the financial situation of Hormel Foods, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Hormel Foods TTM sales up to January 2019 were $9,574.76 and earnings were $950.46 M dollars. If we compare this TTM figures with the last reported annuality, we can esteem Hormel Foods business evolution since October 2018: Annual turnover up to January, compared to lastest yearly report, stayed constant a neutral 0.30%. Regarding profit margin, Hormel Foods remained steady -0.68% to 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 reported $2,360.35 M in revenues for 2019-Q1, a -6.51% less compared to previous quarter. Reported quarter income marked $241.43 M with a profit margin of 10.23%. Profit margin stayed steady 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 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 buy a stock, it's always worth to overview its ownership structure.

Hormel Foods shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 48.21% of all shares.

In case of Hormel Foods stock, 45.33% 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.

For a better context understanding, the next table shows ownership data compared to other related stocks:

HRLBRFSCAGPPCSEB
Market cap$24.2 B$7.0 B$14.0 B$8.1 B$5.0 B
Total shares534.0 M811.8 M486.7 M249.6 M1.2 M
Float shares275.4 M762.0 M484.9 M53.1 M0.3 M
  - Institutional holdings (%)45.3%11.0%90.7%19.6%19.1%
  - Insider holdings (%)48.2%0.0%0.9%78.7%78.3%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Hormel Foods summary

Friday, December 6th, 2019
Open$45.79
Close$45.34
Day range$45.32 - $45.84
Previous close$45.76
Session gain-0.92%
Average true range$0.82
50d mov avg$42.35
100d mov avg$42.11
200d mov avg$41.46
Daily patternlt06a
Weekly pattern

Hormel Foods performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We compared Hormel Foods against BRF, ConAgra Brands, Pilgrim's Pride, Seaboard and Tyson Foods in the following table:
Stock3m6m12m
HRLHormel Foods6.98%8.94%4.35%
BRFSBRF-5.26%28.15%48.12%
CAGConAgra Brands1.23%-1.37%-3.62%
PPCPilgrim's Pri...3.20%19.46%88.28%
SEBSeaboard-3.78%9.82%43.55%
TSNTyson Foods4.93%9.94%63.06%

Hormel Foods competitors

We selected a few stocks to conform a list of Hormel Foods competitors to check if you are interested in investing in HRL:

Latest Hormel Foods stock news