Stock on Focus: Hormel Foods Corporation (HRL)

Company Profile:

Hormel Foods Corporation produces and markets various meat and food products worldwide. The company operates in five segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, Specialty Foods, and International & Other. It provides various perishable meat products, including fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamole, and bacon; and shelf-stable products comprising canned luncheon meats, shelf-stable microwaveable meals, stews, chilies, hash, flour and corn tortillas, salsas, tortilla chips, peanut butter, and other products. The company also offers poultry products, such as turkey products; and nutritional food products and supplements, sugar and sugar substitutes, dessert and drink mixes, and industrial gelatin products. It sells its products through sales personnel, as well as through independent brokers and distributors. The company was formerly known as Geo. A. Hormel Foods Corporation was founded in 1891 and is headquartered in Austin, Minnesota.

Recent News:

The company will issue its second quarter financial results before the markets open on Thursday, May 25, 2017, and will host a conference call at 8:00 a.m. CT (9:00 a.m. ET).

The company announced that its quarterly dividend on the common stock, authorized by the Board of Directors at seventeen cents (17¢) a share on March 28, 2017, will be paid May 15, 2017, to stockholders of record at the close of business on April 18, 2017.

For the first quarter of fiscal year 2017, the company reported diluted earnings per share of $0.44, up 2 percent from 2016 EPS of $0.43. Net earnings of $235 million, flat compared to 2016 net earnings of $235 million.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

HRL’s strengths can be seen in its better growth, strong profitability, better solvency and better efficiency compared with its peers. Its revenue and net income have increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator and RSI stands at 55.54 with positive bias. We rate Hormel Foods Corporation (HRL) a STRONG BUY.