Hormel Foods (HRL, $48.15) beats fiscal Q4 earnings expectations; provides lower-than-expected revenue guidance
Hormel Foods reported fourth-quarter earnings that topped analysts’ expectations. However, the food company’s forecast for 2023 sales were lower than anticipated.
Diluted earnings for the quarter came in at 51 cents a share, vs. Wall Street analysts’ expectations of 50 cents a share. Net sales in the quarter were down -5% year-over-year to $3.3 billion, with organic net sales up +2%, excluding the impact of an additional week last year.
For the full fiscal year 2022, Hormel registered record net sales of $12.5 billion, up +9%; organic net sales having climbed 6%, excluding the partial-year impact of the Planters snack nuts business and an additional week last year..Diluted earnings per share were +10% up to $1.82.
For 2023, Hormel predicted $12.6 billion to $12.9 billion in net sales, while analysts expected $13.1 billion in net sales. “We expect to operate in a volatile, complex and high-cost environment again in fiscal 2023,” CEO Jim Snee said. “We have benefited from our balanced business model, which is not heavily dependent on any one channel, protein, input or product category.”
HRL in upward trend: price may ascend as a result of having broken its lower Bollinger Band on June 17, 2025
HRL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 40 cases where HRL's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 63 cases where HRL's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on July 01, 2025. You may want to consider a long position or call options on HRL as a result. In of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
HRL moved above its 50-day moving average on June 26, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HRL advanced for three days, in of 302 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for HRL moved out of overbought territory on June 10, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 31 similar instances where the indicator moved out of overbought territory. In of the 31 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for HRL turned negative on June 16, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 41 similar instances when the indicator turned negative. In of the 41 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HRL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.443) is normal, around the industry mean (6.614). P/E Ratio (24.124) is within average values for comparable stocks, (27.114). Projected Growth (PEG Ratio) (3.051) is also within normal values, averaging (2.471). Dividend Yield (0.032) settles around the average of (0.043) among similar stocks. P/S Ratio (1.582) is also within normal values, averaging (35.476).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. HRL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. HRL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock worse than average.
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General Information
a manufacturer of meat products and other prepared foods
Industry FoodSpecialtyCandy
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