Hormel Story

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HRL -- USA Stock  

USD 45.41  0.16  0.35%

The essential intend of this write-up is to break down our current position on Hormel for stakeholders considering to short it. We will summarize why Hormel Foods stakeholders may still consider a stake in the business.
Published over a month ago
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Will holding Hormel (NYSE:HRL) be justified in December 2020?
This firm has a beta of 0.427. Let's try to break down what Hormel's beta means in this case. As returns on the market increase, returns on owning Hormel Foods are expected to decrease at a much lower rate. During the bear market, Hormel Foods is likely to outperform the market. The beta indicator helps investors understand whether Hormel Foods moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Hormel deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Hormel Foods. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Hormel Foods

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Hormel Foods' stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Hormel Foods in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Hormel Foods. Your research has to be compared to or analyzed against Hormel Foods' peers to derive any actionable benefits. When done correctly, Hormel Foods' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Hormel Foods.

How important is Hormel Foods's Liquidity

Hormel Foods financial leverage refers to using borrowed capital as a funding source to finance Hormel Foods ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Hormel Foods financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Hormel Foods's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Hormel Foods, but it might be worth checking our own buy vs. sell analysis

What is driving Hormel Foods Investor Appetite?

Hormel Foods exhibits very low volatility with skewness of -0.14 and kurtosis of -0.02. However, we advise investors to further study Hormel Foods technical indicators to make sure all market info is available and is reliable.

Returns Breakdown

Return on Investment26.62
Return on Assets0.12
Return on Equity0.2
Return Capital0.38
Return on Sales0.11

Hormel Foods will most likely finish below $51 in 60 days

New variance is at 1.38. Hormel Foods exhibits very low volatility with skewness of -0.14 and kurtosis of -0.02. However, we advise investors to further study Hormel Foods technical indicators to make sure all market info is available and is reliable.

While many other companies in the packaged foods industry are either recovering or due for a correction, Hormel Foods may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the new economy, it is better to hold off any trading of Hormel as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Hormel Foods.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Hormel Foods. Please refer to our Terms of Use for any information regarding our disclosure principles.

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