HRL Stock Analysis — Hormel Foods
Sector: Consumer Staples
AI Verdict
Hormel trades at 16.0x next year's earnings while analysts expect a huge earnings rebound, so you're getting a cheap price for the growth if its brand moat delivers on those forecasts.
Competitive Moat
Hormel owns trusted brands like Spam and Skippy, giving it shelf space and pricing power in supermarkets. Its vertically integrated supply chain and strong distribution relationships make it hard for new entrants to disrupt its core grocery business.
Summary
A huge jump in expected earnings (+82.7% forward EPS growth) has slashed Hormel's forward P/E to 16.0x, well below its trailing multiple.
Where It Stands
Hormel is down -20.58% over the past year, trades at 16.0x next year's earnings (below the sector median of 20x), and sits at a neutral RSI of 51.0.
Key Metrics
- RSI: 51 — Neutral
- Trailing P/E: 29.1x
- Forward P/E: 16.0x
- PEG Ratio: 0.35
- Earnings Growth: +0.8%
- Revenue Growth: +0.0%
- Market Cap: $13.6B
- Dividend Yield: 0.05%
- 1-Year Return: -20.58%
- 52-Week High: $31.86
- 52-Week Low: $19.70
Analyst Consensus
6 Buy · 9 Hold · 0 Sell (15 analysts)
Bull Case
With analysts forecasting +82.7% EPS growth and a forward P/E of 16.0x, you're getting unusually high earnings growth at a price below the sector median.
Bear Case
If Hormel's forward P/E reverts to its trailing P/E of 29.1x without delivering on the 82.7% EPS growth, the stock could face another sharp correction.
Catalyst to Watch
Watch for the next earnings report — if EPS growth comes in far below the 82.7% consensus, the valuation case evaporates.