Hormel Stock Story

HRL

Stock

USD 49.86 0.25 0.50%

Macroaxis Story

Hormel Foods Corp is scheduled to announce its earnings today. The next fiscal year end is expected on the 8th of December 2022. As many baby boomers are still indifferent towards consumer defensive space, it makes sense to break down Hormel as a potential position. We will analyze why it could be a much better year for Hormel Foods shareholders.

Published over two months ago

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Should you continue to hold Hormel Foods (NYSE:HRL) based on the new analyst consensus?

Hormel Foods is FAIRLY VALUED at 48.78 per share with modest projections ahead.

Our trade recommendations tool can be used to complement Hormel Foods Corp advice provided by experts. It analyzes the entity's potential to grow against your specific risk preferences and investment horizon.

Should you continue to hold Hormel Foods (NYSE:HRL) based on the new analyst consensus?

What is the right price you would pay to acquire a share of Hormel Foods? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated.

Please read more on our stock advisor page.

What is happening with Hormel Foods Corp this year

Annual and quarterly reports issued by Hormel Foods Corp are formal financial statements that are published yearly and quarterly and sent to Hormel stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.

Companies such as Hormel Foods often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How does Hormel utilize its cash?

To perform a cash flow analysis of Hormel Foods, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Hormel Foods is receiving and how much cash it distributes out in a given period. The Hormel Foods cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Hormel Foods Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 1.12 Billion

A Deeper Perspective

Earning per share calculations of the firm is based on official Zacks consensus of 4 analysts regarding Hormel Foods' future annual earnings. Given the historical accuracy of 98.57%, the future earnings per share of the company is estimated to be 1.97 with the lowest and highest values of 1.95 and 2.01, respectively. Please note that this consensus of annual earnings estimates for Hormel Foods Corp is an estimate of EPS before non-recurring items and including employee stock options expenses.

Is Hormel a risky opportunity?

Let's check the volatility. Hormel is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Hormel (NYSE:HRL) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Hormel Foods stock makes you a part-owner of that company.

Hormel Foods Corp Current Consensus

Here is the new trade recommendation based on an ongoing consensus estimate among financial analysis covering Hormel Foods Corp. The Hormel consensus assessment is calculated by taking the average estimates from all of the analysts covering Hormel Foods

Hold

Sell

Strong Buy	0	0.0
Buy	0	0.0
Hold	6	85.71
Sell	1	14.29
Strong Sell	0	0.0

Hormel technical analysis denotes possible come-back

The mean deviation is down to 1.05 as of today. Hormel Foods Corp currently demonstrates below-average downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.05. However, we advise investors to further question Hormel Foods Corp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Hormel Foods' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Hormel Foods' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Hormel Foods Implied Volatility

Hormel Foods' implied volatility exposes the market's sentiment of Hormel Foods Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Hormel Foods' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Hormel Foods stock will not fluctuate a lot when Hormel Foods' options are near their expiration.

Our Final Perspective on Hormel Foods

While other companies under the packaged foods industry are still a bit expensive, Hormel Foods may offer a potential longer-term growth to stakeholders. In closing, as of the 2nd of June 2022, we believe that at this point, Hormel Foods is very steady with low odds of distress within the next 2 years. From a slightly different point of view, the entity appears to be fairly valued. Our overall 90 days buy-hold-sell advice on the company is Strong Hold.

Editorial Staff

Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile

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 Ellen Johnson do not own shares of Hormel Foods Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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