Hormel Foods Corporation (NYSE:HRL) is Waving the Bear Flag

Hormel Foods Corporation (NYSE:HRL) is Waving the Bear Flag


The Hormel Foods Corporation (HRL) shares are trading at lower $47.01 and the avg recommendation for the stock is Hold. while the current analyst price target stands at $43.44.

To add more color to this target, the company’s high over the last year is $51.53 and the low is $39.01. Over the last 52 weeks, HRL is down -8.77% while the S&P 500 is down -0.57%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, HRL reported a profit of $477.35 million. Hormel Foods Corporation also saw revenues increase to $2.42 billion. In addition, HRL has free cash flow of $409.73 million as of 04-2020. The company’s EBITDA came in at $354.07 million which compares well with its peers.

HRL booked profit margins of 9.60%, its Return on Equity (ROE) is 15.40%, and its Return on Assets is 11.30%. All told, it is clear that, HRL needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. HRL has a short ratio of 10.96 and outstanding shares of 538.12M.

Company Outlook

HRL has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.09 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.70. Hormel Foods Corporation HRL also noted assets of $8.4 billion at the end of the last quarter. Investors should also keep an eye on sector updates as HRL has historically followed its peers on positive news.

All told, Hormel Foods Corporation HRL has strung together solid data and demonstrated underlying fundamentals. At its current valuation, HRL represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Hormel Foods Corporation HRL is now commanding a market cap of 25.00B and a float of 280.94M. HRL is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of HRL stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in HRL, either long or short, and we have not been compensated for this article.