Hormel Foods Corporation (NYSE:HRL) is now being followed by Stephens, as they initiated the stock at Equal-Weight on March 05. Analysts at Jefferies, shed their positive views on November 27 by lowering it fromBuy to Hold. Analysts at JP Morgan, made their first call about the stock on September 28, recommending it is Neutral. Stephens analysts came out with bearish views on July 17 when the call was made. They think the stock is now Equal-Weight compared to to their prior call for Overweight.
HRL stock dropped -0.21% in recent trade and currently has a stock-market value of $23.11B. The shares finished at $42.7, after trading as low as $42.53 earlier in the session. It hit an intraday high Thursday at $42.9. Trading activity significantly weakened as the volume at ready counter decreased to 1,404,945 shares versus 2,847,860 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,845,774 shares. The stock is now 31.71% above against its bear-market low of $32.42 on March 22, 2018. It has retreated -8.34% since it’s 52-week high of $46.26 reached in November. Now the market price is up 25.48% on the year and up 0.05% YTD.
Wall Street’s most bullish Hormel Foods Corporation (NYSE:HRL) analysts are predicting the share price to blow past $50 per share during the next 12 months. The current median share price forecast by them is $40, suggesting that the stock could increase -6.32% in that time frame. The average price target of $40.33 calls for a nearly -5.55% increase in the stock price.
Hormel Foods Corporation (HRL)’s 50 day simple moving average (SMA 50) price is $42.67 and its 200-day simple moving average (SMA 200) price is $40.66. The company’s stock currently has a total float of 277.5M shares. Its weekly volatility is hovering around 1.56% and felt 1.78% volatility in price over a month. On the upside, the share price will test short term resistance at around $42.89. On a downside, the stock is likely to find some support, which begins at $42.52. The failure to get near-term support could push it to $42.34.
When looking at valuations, Hormel Foods Corporation (HRL) has a pricey P/E of 24.74x as compared to industry average of 22.39x. Moreover, it trades for 22.03 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 4x price/book and 2.41x price/sales. Compared to others, Hormel Foods Corporation is in a different league with regards to profitability, having net margins of 9.9%. To put some perspective around this, the industry’s average net margin is 8.82%. HRL’s ROE is 17.3%, which is also considerably better than the industry’s ROE of 15.33%. It’s also very liquid in the near term, with a current ratio of 1.5. The stock has a debt/capital of 0.11.
Shares of HRL have dropped -0.8% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Hormel Foods Corporation (NYSE:HRL) has topped consensus earnings estimates in 6 quarters (50%), missed earnings in 5 quarters (41%), whereas at 1 occasion EPS met analyst expectations. HRL last reported earnings that receded expectations. The company raked in $0.44 per share, -18.52% change on the same period last year. That was worse than consensus for $0.44. Revenue for the recent quarter stood at $2.36 billion, up 1% on last year and below the $2.39 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $2.35 billion to $2.43 billion, which should be compared with $0 generated last year. EPS is seen in a range of $0.41 to $0.47, against the 0 reported a year ago.