Hormel Foods Stock Target Price and Analyst Consensus

HRL
 Stock
  

USD 49.86  0.25  0.50%   

The current analyst and expert consensus on Hormel Foods is Sell with 6 hold recommendations. The current projected Hormel Foods target price consensus is 47.75 with 4 analyst opinions. One of the most common ways Hormel Foods Corp analysts use to provide buy-or-sell recommendation to the public are conference calls analysis and financial statements evaluations. Some experts can also talk to Hormel Foods vendors, executives, and/or customers. Note, the total number of analysts currently providing their opinion is not significant to determine adequate consensus on Hormel Foods. We strongly encourage you to use your own analysis of Hormel Foods Corp to validate this buy or sell advice. Hormel Foods recommendation module provides expert sentiment on the projected Hormel Foods Corp target price to derive its highest and lowest estimates based on target price standard deviation of 2.217. Please check Macroaxis Advice on Hormel Foods to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon.
  
Profit Margin is expected to hike to 0.1 this year, although the value of Gross Profit will most likely fall to nearly 2.2 B. Hormel Foods Debt Non Current is relatively stable at the moment as compared to the past year. The company's current value of Debt Non Current is estimated at 4.11 Billion. Goodwill and Intangible Assets is expected to hike to about 8.4 B this year, although the value of Receivables will most likely fall to nearly 675.1 M.

Hormel Foods Target Price Consensus

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Hormel target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts performance other than comparing it to the past results via a very sophisticated attribution analysis. Hormel target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
Number of Opinions7
Lowered Outlook0
Raized Outlook0
Sell
Most Hormel analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to helps potential investors understand Hormel stock's fair price compared to its market value. Analysts arrive at stock ratings after researching public financial statements of Hormel Foods Corp, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice   Exposure   Valuation

Hormel Foods Target Price Projection

Hormel Foods' current and average target prices are 49.86 and 47.75, respectively. The current price of Hormel Foods is the price at which Hormel Foods Corp is currently trading. On the other hand, Hormel Foods' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Hormel Foods Market Quote on 15th of August 2022

Low Price49.35Odds
High Price49.88Odds

49.86

Target Price

Analyst Consensus On Hormel Foods Target Price

Low Estimate45.0Odds
High Estimate50.0Odds
Number of Analysts4
Standard Deviation2.217

47.75

Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Hormel Foods Corp and the information provided on this page.

Hormel Foods Analyst Ratings

Hormel Foods' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Hormel Foods stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Hormel Foods' financials, market performance, and future outlook by experienced professionals. Hormel Foods' historical ratings below, therefore, can serve as a valuable tool for investors.

Analyst Consensus Breakdown

Average Consensus Estimates

About Hormel Foods Target Price Projections

Hormel Foods's target price is an analyst's projection of its future price. Price targets can be assigned to all types of securities, from complex investment products to stocks such as Hormel Foods Corp and even bonds. If the target price is unavailable, it is most likely because there were not enough analyst opinions to come up with a consensus estimate. When setting a price target estimate, an analyst is trying to determine what the Stock is worth and where the price will be in a year from now. Generally, the target price of Hormel depends on its intrinsic valuation, beta (i.e., risk over market), and overall volatility. Most analysts publish their price targets in research reports on specific companies, along with their buy, hold, or sell recommendations. Stock price targets are often quoted in the financial news media. Macroaxis uses multiple feeds to provide overall target price projection for Hormel Foods Corp including analysis of its current option contracts.
Hormel Foods' latest option contracts expiring on 2022-08-19 are carrying combined implied volatility of 18.07 with a put-to-call open interest ratio of 0.77 over 66 outstanding agreements suggesting investors are buying slightly more calls than puts on contracts expiring on 2022-08-19. The current put volume is at 71, with calls trading at the volume of 43. This yields a 1.65 put-to-call volume ratio. The Hormel Foods option chain provides detailed quote and price information for the current Hormel Foods Corp option contracts. It shows all of Hormel Foods' listed puts, calls, expiration dates, strike prices, and other pricing information.

Open Interest Against 2022-08-19 Option Contracts

Hormel Foods option prices can potentially be used to forecast stock returns because most option chains provide information not only about the current prices but also about the future conditions in Hormel Foods' lending market. For example, when Hormel Foods' puts are not actively trading or completely missing in the marketplace, investors can use it to internalize expected shorting costs. So if an investor is writing a put option on Hormel Foods, he or she must hedge the risk by shorting Hormel Foods stock over its option's life.
The chart above shows Hormel Foods' distribution of open interest by maturity on contracts that have not yet been settled. The area between the two highest points is the projection of the price at expiration. Hormel Foods' open interest chart also provides vital information regarding the liquidity of an option. If there is no open interest for Hormel Foods' option, there is no secondary market available for investors to trade.

Hormel Foods Maximum Pain Price across 2022-08-19 Option Contracts

Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of particular securities such as Hormel Foods close to expiration to expire worthless. According to most research, approximately 10% to 15% of all stock options are exercised, while about 35% expire worthlessly, with roughly 50% traded out before the expiration date. So, Max pain occurs when market makers reach a net positive position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthless.
Hormel Foods' stock options are financial instruments that give investors the right to buy or sell shares of Hormel Foods Corp common stock at a specified price for a given time period. Generally speaking, an option to purchase or sell Hormel stock makes it part of the underlying stock when the option's price is tied to the movement of the underlying stock. If Hormel Foods' stock price goes up or down, the stock options follow.
Please check Macroaxis Advice on Hormel Foods to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon.

Hormel Foods Corp In The Money Call Balance

When Hormel Foods' strike price is surpassing the current stock price, the option contract against Hormel Foods Corp stock is said to be in the money. When it comes to buying Hormel Foods' options that are 'In the Money' or 'Out of the Money', the choice depends on your outlook for the underlying security, financial situation, and what you are trying to achieve.
While 'out-of-the-money' option contracts written on Hormel Foods Corp are typically viewed as the more aggressive, there are potential upsides to purchasing these types of options contracts. For one, the cost to buy an 'Out of the Money' option is lower than the cost to buy an 'In the Money' option. This cost-benefit is due to the fact that at the time of the purchase, 'Out of the Money' contracts have no intrinsic value. So, while the potential for a 100% loss is more significant, the cost and risk to enter the trade are lower.

Hormel Current Options Market Mood

Hormel Foods' open interest and total value indicators provide investors with the necessary information to digest the overall options buildup for its expiring contracts. In addition, it helps Hormel Stock's traders understand whether a recent fall or rise in the market is unreasonable and if the time has come to take contrarian positions. These ratios are calculated based on options trading volumes and current open interest.

Put-to-Call Open Interest

Put-to-Call Volume

Most options investors, including buyers and sellers of Hormel Foods' calls and puts, are not very successful. It is estimated that an average options trader loses somewhere between 80% to 90% of the time. Hormel Foods' option open interest and volume spread between outstanding puts and calls are regarded by many investors as reliable indicators of the overall future market direction. Using current Hormel Foods' option volume and open interest to make an investment decision is considered a contrarian-sentiment measure that can be utilized in many timing strategies in both derivative and spot marketplace.

Additional Hormel Foods Value Projection Modules

Most investment researchers agree that the mispricing and readjustment of any Stock value happens often and is sometimes even predictable, but there is no strong theory explaining why it happens. The current price of Hormel Foods is a key component of Hormel Foods valuation and have some predictive power on the future returns of a 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' 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.
Hype
Prediction
LowEstimated ValueHigh
48.3349.8851.43
Details
Intrinsic
Valuation
LowReal ValueHigh
46.5848.1354.85
Details
Naive
Forecast
LowNext ValueHigh
49.7651.3152.87
Details
Earnings
Estimates (7)
LowProjected EPSHigh
1.951.972.01
Details
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 Corp.

Additional Hormel Foods Value Projection Modules

Most investment researchers agree that the mispricing and readjustment of any Stock value happens often and is sometimes even predictable, but there is no strong theory explaining why it happens. The current price of Hormel Foods is a key component of Hormel Foods valuation and have some predictive power on the future returns of a 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' 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.
Hype
Prediction
LowEstimated ValueHigh
48.3349.8851.43
Details
Intrinsic
Valuation
LowReal ValueHigh
46.5848.1354.85
Details
Naive
Forecast
LowNext ValueHigh
49.7651.3152.87
Details
Earnings
Estimates (7)
LowProjected EPSHigh
1.951.972.01
Details
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 Corp.

Trending Themes

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Please check Macroaxis Advice on Hormel Foods to cross-verify analyst projections. Unlike analyst recommendations, Macroaxis provides advice only from the perspective of investor risk tolerance and investment horizon. Note that the Hormel Foods Corp information on this page should be used as a complementary analysis to other Hormel Foods' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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The data published in Hormel Foods' official financial statements usually reflect Hormel Foods' business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Hormel Foods Corp. For example, before you start analyzing numbers published by Hormel accountants, it's critical to develop an understanding of what Hormel Foods' liquidity, profitability, and earnings quality are in the context of the Consumer Defensive space in which it operates.
Please note, the presentation of Hormel Foods' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Hormel Foods' management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Hormel Foods' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Hormel Foods Corp. Please utilize our Beneish M Score to check the likelihood of Hormel Foods' management to manipulate its earnings.