Stock in Focus: Hormel Foods Corp (HRL)

Company Profile:

Hormel Foods Corporation produces and markets various meat and food products to retail, foodservice, deli, and commercial customers in the United States and internationally. The company operates through four segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, and International & Other. The company was formerly known as Geo. A. Hormel & Company and changed its name to Hormel Foods Corporation in January 1995. Hormel Foods Corporation was founded in 1891 and is headquartered in Austin, Minnesota.

Recent News:

On June 7, 2021, the company announced the closing of its acquisition of the Planters snacking portfolio from the Kraft Heinz Company (Nasdaq: KHC). The acquisition includes the Planters, NUT-rition, Planters Cheez Balls and Corn Nuts brands, as well as three production facilities.

The company announced that its quarterly dividend on the common stock, authorized by the Board of Directors at 24.50 cents ($0.2450) a share on May 24, 2021, will be paid August 16, 2021, to stockholders of record at the close of business on July 12, 2021.

The company posted earnings of 42 cents per share, which remained flat as compared to the year-ago quarter and matched expectations of 42 cents per share. Revenue came in at $2.61 billion, up 8% year over year. Analysts had projected revenue of $2.42 billion.

 

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 profitability, strong solvency and better efficiency compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in MACD and Stochastic oscillator. The RSI stands at 56.13 with positive bias. We rate Hormel Foods Corp (HRL) a STRONG BUY.

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