Hormel Stock Buy Hold or Sell Recommendation

HRL
 Stock
  

USD 46.40  0.46  0.98%   

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Hormel Foods Corp is 'Hold'. Macroaxis provides Hormel Foods buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding HRL positions. The advice algorithm takes into account all of Hormel Foods' available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Hormel Foods' buy-and-hold perspective. Please check Hormel Foods Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Hormel and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Hormel Foods Corp.

Execute Hormel Foods Buy or Sell Advice

The Hormel recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Hormel Foods Corp. Macroaxis does not own or have any residual interests in Hormel Foods Corp or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Hormel Foods' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Hormel FoodsBuy Hormel Foods
Hold

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

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Analyst Consensus

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Reporting Quality (M-Score)

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For the selected time horizon Hormel Foods Corp has a Risk Adjusted Performance of 0.0245, Jensen Alpha of 0.0375, Total Risk Alpha of 0.0922, Sortino Ratio of 0.0598 and Treynor Ratio of 0.0495
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. To make sure Hormel Foods Corp is not overpriced, please check out all Hormel Foods fundamentals, including its revenue, cash flow from operations, current asset, as well as the relationship between the cash per share and beta . Given that Hormel Foods Corp has a price to earning of 28.93 X, we strongly advise you to confirm Hormel Foods Corp market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your regular risk tolerance and investing horizon.

Hormel Foods Trading Alerts and Improvement Suggestions

Hormel Foods Corp generated a negative expected return over the last 90 days
About 47.0% of the company shares are held by company insiders
On 15th of August 2022 Hormel Foods paid $ 0.26 per share dividend to its current shareholders
Latest headline from simplywall.st: Insiders at Hormel Foods Corporation sold US858k worth of stock, possibly indicating weakness in the future - Simply Wall St

Hormel Foods current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Hormel analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Hormel analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price46.25
Target Median Price46.50
Target High Price50.00
Recommendation Mean3.00
Number Of Analyst Opinions8
Target Low Price41.00
Average Consensus Sell
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Hormel Foods Returns Distribution Density

The distribution of Hormel Foods' historical returns is an attempt to chart the uncertainty of Hormel Foods' future price movements. The chart of the probability distribution of Hormel Foods stock daily returns describes the distribution of returns around its average expected value. We use Hormel Foods Corp price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Hormel Foods returns is essential to provide solid investment advice for Hormel Foods.
Mean Return0.0249Value At Risk-1.26
Potential Upside1.71Standard Deviation1.18
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Hormel Foods historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Hormel Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Hormel Foods is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Hormel Foods Corp backward and forwards among themselves. Hormel Foods' institutional investor refers to the entity that pools money to purchase Hormel Foods' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
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Blackrock IncCommon Shares29.2 M1.4 B
State Street CorpCommon Shares27 M1.3 B
Capital International InvestorsCommon Shares12.1 M571 M
Principal Financial Group IncCommon Shares5.9 M281.2 M
Geode Capital Management LlcCommon Shares5.9 M281 M
Mairs Power IncCommon Shares4.8 M225.9 M
Note, although Hormel Foods' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Hormel Foods Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Hormel Foods or Consumer Defensive sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Hormel Foods' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Hormel stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.0375
β
Beta against DOW0.30
σ
Overall volatility
1.14
Ir
Information ratio 0.08

Hormel Foods Volatility Alert

Hormel Foods Corp has relatively low volatility with skewness of -2.57 and kurtosis of 14.12. However, we advise all investors to independently investigate Hormel Foods Corp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. 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 bullish 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.

Hormel Foods Fundamentals Vs Peers

Comparing Hormel Foods' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Hormel Foods' direct or indirect competition across all of the common fundamentals between Hormel Foods and the related equities. This way, we can detect undervalued stocks with similar characteristics as Hormel Foods or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Hormel Foods' fundamental indicators could also be used in its relative valuation, which is a method of valuing Hormel Foods by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Hormel Foods to competition
FundamentalsHormel FoodsPeer Average
Return On Equity13.67 %(0.31) %
Return On Asset6.79 %(0.14) %
Profit Margin7.70 %(1.27) %
Operating Margin12.06 %(5.51) %
Current Valuation29.38 B16.62 B
Shares Outstanding542.57 M571.82 M
Shares Owned by Insiders47.43 %10.09 %
Shares Owned by Institutions41.59 %39.21 %
Number of Shares Shorted10.85 M4.71 M
Price to Earning28.93 X28.72 X
Price to Book3.86 X9.51 X
Price to Sales2.04 X11.42 X
Revenue12.46 B9.43 B
Gross Profit1.96 B27.38 B
EBITDA1.5 B3.9 B
Net Income959.84 M570.98 M
Cash and Equivalents885.2 M2.7 B
Cash per Share1.62 X5.01 X
Total Debt3.32 B5.32 B
Debt to Equity0.45 %48.70 %
Current Ratio2.28 X2.16 X
Book Value Per Share12.14 X1.93 K
Cash Flow from Operations1.22 B971.22 M
Short Ratio6.70 X4.00 X
Earnings Per Share1.62 X3.12 X
Price to Earnings To Growth2.98 X4.89 X
Number of Employees20 K18.84 K
Beta0.11-0.15
Market Capitalization25.43 B19.03 B
Total Asset6.37 B29.47 B
Retained Earnings3.67 B9.33 B
Working Capital976.72 M1.48 B
Current Asset2.03 B9.34 B
   Exercise or conversion by Kevin Myers of 5000 shares of Hormel Foods subject to Rule 16b-3 [view details]

Hormel Foods Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Hormel . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Hormel Foods Buy or Sell Advice

When is the right time to buy or sell Hormel Foods Corp? Buying financial instruments such as Hormel Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

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Toys
Toys Theme
Companies producing and distributing toys and different gaming products for kids. The Toys theme has 40 constituents at this time.
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Please check Hormel Foods Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try Fund Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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Is Hormel Foods' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Hormel Foods. If investors know Hormel will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Hormel Foods listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Hormel Foods Corp is measured differently than its book value, which is the value of Hormel that is recorded on the company's balance sheet. Investors also form their own opinion of Hormel Foods' value that differs from its market value or its book value, called intrinsic value, which is Hormel Foods' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Hormel Foods' market value can be influenced by many factors that don't directly affect Hormel Foods' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Hormel Foods' value and its price as these two are different measures arrived at by different means. Investors typically determine Hormel Foods value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hormel Foods' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.