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's RSI Oscillator climbs out of oversold territory
The RSI Indicator for HRL moved out of oversold territory on May 26, 2023. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 25 similar instances when the indicator left oversold territory. In of the 25 cases the stock moved higher. This puts the odds of a move higher at .
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 55 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 June 01, 2023. You may want to consider a long position or call options on HRL as a result. In of 103 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for HRL just turned positive on June 02, 2023. Looking at past instances where HRL's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
HRL moved above its 50-day moving average on June 01, 2023 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 334 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 210 cases where HRL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day moving average for HRL crossed bearishly below the 50-day moving average on May 23, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 .
HRL broke above its upper Bollinger Band on June 02, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
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 (2.898) is normal, around the industry mean (10.020). P/E Ratio (23.981) is within average values for comparable stocks, (34.935). Projected Growth (PEG Ratio) (3.326) is also within normal values, averaging (2.677). Dividend Yield (0.026) settles around the average of (0.056) among similar stocks. P/S Ratio (1.827) is also within normal values, averaging (29.332).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock slightly better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. HRL’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
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 SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a 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.
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of meat products and other prepared foods
Industry FoodSpecialtyCandy
HRL and
Correlation & Price change
A.I.dvisor indicates that over the last year, HRL has been loosely correlated with CPB. These tickers have moved in lockstep 55% of the time. This A.I.-generated data suggests there is some statistical probability that if HRL jumps, then CPB could also see price increases.
