Aug. 21 at 12:46 PM
"Heads up alert! Upcoming earnings on Thursday, 8/28/2025 for
$HRL
Bearish (3.2)
Hormel Foods Corporation (NYSE: HRL), a key player in the global branded food industry, is currently facing a challenging phase.
Despite its reputation as a reliable dividend stock, the company's recent performance has not been encouraging.
Over the past year, HRL has underperformed the broader market, with its stock price declining significantly and losing around 40% of its value since 2022.
The company is grappling with several headwinds, including rising costs, the avian flu, and slow recovery in critical markets like China.
Additionally, its recent acquisition of Planters has encountered initial difficulties.
Hormel's current P/E ratio suggests that the stock may be overvalued compared to its earnings growth potential.
While the company's efforts to innovate, such as the launch of new bold flavors and initiatives targeting food insecurity, reflect its commitment to growth and social responsibility, these moves have not yet translated into substantial financial gains.
Compared to industry peers, Hormel's revenue forecasts appear modest, and its EPS growth has lagged behind expectations, further exacerbating investor concerns.
Hormel Foods is scheduled to release its third-quarter earnings in September.
Analysts are anticipating low double-digit growth in the bottom line, a welcome change from recent underperformance.
Historically, the company has maintained a steady track record of dividend payments, which continues to appeal to income-focused investors.
However, the combined impact of current challenges may dampen short-term earnings potential.
Analyst consensus estimates suggest cautious optimism, with expectations of slight improvements in revenue and profit margins.
The upcoming earnings report will be crucial in restoring market confidence and could significantly impact the stock's trajectory if it outperforms or underperforms expectations.
Hormel Foods operates within the consumer staples sector, which has recently experienced mixed results.
While the sector generally benefits from its defensive nature during economic downturns, specific challenges such as supply chain disruptions and changing consumer preferences have impacted performance.
Hormel, being a part of this sector, faces similar challenges but also has opportunities through innovation and market expansion.
Overall, the sector shows resilience, yet individual company performance, like Hormel's, remains under pressure due to distinct operational challenges.
- Funds were net buyers of
$HRL during the previous reporting quarter.
- Funds with large holdings in
$HRL include:
- Holocene Advisors LP, MV:
$99MM. Fund Rank: 91%
www.holoceneadvisors.com
- Bill & Melinda Gates Foundation Trust, MV:
$66MM. Fund Rank: 87%
www.gatesfoundation.org
- Canada Pension , MV:
$19MM. Fund Rank: 80%
- Adage Capital P, MV:
$8MM. Fund Rank: 89%
www.adagecapital.com
- IEQ Capital LLC, MV:
$1MM. New position. Fund Rank: 82%
- Last 10 days performance: 0%
- Last 30 days performance: -2%
- Last 90 days performance: -3%
Some of the latest news articles:
- Title: Coty (COTY) Reports Q4 Loss, Beats Revenue Estimates
Publication Date: 8/20/2025 9:40:01 PM, Source: yahoo
URL: https://finance.yahoo.com/news/coty-coty-reports-q4-loss-214001679.html?.tsrc=rss
- Title: Top Stock Movers Now: Target, La-Z-Boy, Hormel Foods, and More
Publication Date: 8/20/2025 3:45:10 PM, Source: yahoo
URL: https://www.investopedia.com/top-stock-movers-now-target-la-z-boy-hormel-foods-and-more-11794330?.tsrc=rss
- Title: Hormel Foods Stock Outlook: Is Wall Street Bullish or Bearish?
Publication Date: 8/19/2025 1:03:11 PM, Source: yahoo
URL: https://www.barchart.com/story/news/34246896/hormel-foods-stock-outlook-is-wall-street-bullish-or-bearish?.tsrc=rss
- Title: 3 Reasons HRL is Risky and 1 Stock to Buy Instead
Publication Date: 8/19/2025 4:03:14 AM, Source: yahoo
URL: https://finance.yahoo.com/news/3-reasons-hrl-risky-1-040314117.html?.tsrc=rss
Follow us on stocktwits.com for more earnings alerts. Not a financial advice. Not a trading signal."
