Hormel Foods Stock Buy Hold or Sell Recommendation

HRL Stock  USD 34.85  0.50  1.46%   
Considering the 90-day investment horizon and your typical level of risk aversion, our recommendation regarding Hormel Foods is 'Strong Hold'. Macroaxis provides Hormel Foods buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding HRL positions. The advice algorithm takes into account all of Hormel Foods' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Hormel Foods' buy or sell advice are summarized below:
Real Value
33.95
Target Price
34.43
Hype Value
34.95
Market Value
34.85
Naive Value
33.17
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Hormel Foods given historical horizon and risk tolerance towards Hormel Foods. When Macroaxis issues a 'buy' or 'sell' recommendation for Hormel Foods, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Hormel Foods Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more information on how to buy Hormel Stock please use our How to buy in Hormel Stock guide.
In addition, we conduct extensive research on individual companies such as Hormel and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Hormel Foods. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area.

Execute Hormel Foods Buy or Sell Advice

The Hormel recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Hormel Foods. Macroaxis does not own or have any residual interests in Hormel Foods or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Hormel Foods' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Hormel FoodsBuy Hormel Foods
Strong Hold

Market Performance

ModestDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

Very LowDetails

Economic Sensitivity

Follows the market closelyDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Possible ManipulatorDetails
For the selected time horizon Hormel Foods has a Risk Adjusted Performance of 0.0531, Jensen Alpha of 0.0877, Total Risk Alpha of (0.32), Sortino Ratio of 0.0299 and Treynor Ratio of 0.2546
Our investment recommendation module can be used to complement Hormel Foods trade recommendations provided by average analyst sentiment. It analyzes the entity's potential to grow using fundamental, technical, data market data available at the time. To make sure Hormel Foods is not overpriced, please check out all Hormel Foods fundamentals, including its cash flow from operations, working capital, and the relationship between the cash per share and number of employees . Given that Hormel Foods has a price to book of 2.40 X, we strongly advise you to confirm Hormel Foods market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your regular risk tolerance and investing horizon.

Hormel Foods Trading Alerts and Improvement Suggestions

Hormel Foods has a strong financial position based on the latest SEC filings
Over 89.0% of the company shares are owned by institutional investors
On 15th of February 2024 Hormel Foods paid $ 0.2825 per share dividend to its current shareholders
Latest headline from aol.com: Crunch time for Mower County Food Shelf March FoodShare donations

Hormel Foods Returns Distribution Density

The distribution of Hormel Foods' historical returns is an attempt to chart the uncertainty of Hormel Foods' future price movements. The chart of the probability distribution of Hormel Foods daily returns describes the distribution of returns around its average expected value. We use Hormel Foods price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Hormel Foods returns is essential to provide solid investment advice for Hormel Foods.
Mean Return
0.18
Value At Risk
-2.2
Potential Upside
1.86
Standard Deviation
2.21
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Hormel Foods historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Hormel Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Hormel Foods is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Hormel Foods backward and forwards among themselves. Hormel Foods' institutional investor refers to the entity that pools money to purchase Hormel Foods' securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Renaissance Technologies Corp2023-12-31
3.5 M
Northern Trust Corp2023-12-31
2.9 M
Stifel Financial Corp2023-12-31
2.7 M
First Trust Advisors L.p.2023-12-31
2.6 M
Dimensional Fund Advisors, Inc.2023-12-31
2.5 M
Gates Bill & Melinda Foundation2023-09-30
2.2 M
Legal & General Group Plc2023-12-31
2.1 M
Norges Bank2023-12-31
1.9 M
Capital Research & Mgmt Co - Division 32023-12-31
1.9 M
Vanguard Group Inc2023-12-31
34.8 M
Blackrock Inc2023-12-31
27.7 M
Note, although Hormel Foods' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Hormel Foods Cash Flow Accounts

201920202021202220232024 (projected)
Change To Inventory(1.8M)(145.2M)(351.7M)35.7M32.1M33.7M
Change In Cash1.0B(1.1B)368.6M(245.6M)(282.4M)(268.3M)
Free Cash Flow760.5M771.7M857.3M777.6M894.3M939.0M
Depreciation205.8M228.4M262.8M253.3M291.3M305.9M
Other Non Cash Items(11.6M)(23.2M)41.8M70.5M63.5M66.6M
Dividends Paid487.4M523.1M557.8M592.9M681.9M716.0M
Capital Expenditures367.5M230.2M277.7M270.2M310.7M163.6M
Net Income908.4M909.1M1.0B792.9M911.9M477.9M
End Period Cash Flow1.7B613.5M982.1M736.5M847.0M889.4M
Investments(2.6M)(4.4M)(258.0M)(689.5M)(620.6M)(589.6M)
Change Receivables(11.1M)(119.5M)(191.6M)28.4M25.5M26.8M
Change To Netincome42.9M30.2M244.0M125.7M144.6M151.8M
Net Borrowings992.4M2.3B(8.7M)(6.8M)(7.9M)(7.5M)

Hormel Foods Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Hormel Foods or Food Products sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Hormel Foods' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Hormel stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.09
β
Beta against NYSE Composite0.67
σ
Overall volatility
2.30
Ir
Information ratio 0.02

Hormel Foods Volatility Alert

Hormel Foods has relatively low volatility with skewness of 4.03 and kurtosis of 28.27. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Hormel Foods' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Hormel Foods' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Hormel Foods Implied Volatility

Hormel Foods' implied volatility exposes the market's sentiment of Hormel Foods stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Hormel Foods' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Hormel Foods stock will not fluctuate a lot when Hormel Foods' options are near their expiration.

Hormel Foods Fundamentals Vs Peers

Comparing Hormel Foods' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Hormel Foods' direct or indirect competition across all of the common fundamentals between Hormel Foods and the related equities. This way, we can detect undervalued stocks with similar characteristics as Hormel Foods or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Hormel Foods' fundamental indicators could also be used in its relative valuation, which is a method of valuing Hormel Foods by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Hormel Foods to competition
FundamentalsHormel FoodsPeer Average
Return On Equity0.1-0.31
Return On Asset0.0491-0.14
Profit Margin0.07 %(1.27) %
Operating Margin0.09 %(5.51) %
Current Valuation21.14 B16.62 B
Shares Outstanding547.69 M571.82 M
Shares Owned By Insiders0.21 %10.09 %
Shares Owned By Institutions89.20 %39.21 %
Number Of Shares Shorted9.98 M4.71 M
Price To Earning27.15 X28.72 X
Price To Book2.40 X9.51 X
Price To Sales1.55 X11.42 X
Revenue12.11 B9.43 B
Gross Profit2 B27.38 B
EBITDA1.37 B3.9 B
Net Income792.92 M570.98 M
Cash And Equivalents982.11 M2.7 B
Cash Per Share1.59 X5.01 X
Total Debt3.31 B5.32 B
Debt To Equity0.45 %48.70 %
Current Ratio2.40 X2.16 X
Book Value Per Share14.32 X1.93 K
Cash Flow From Operations1.05 B971.22 M
Short Ratio2.49 X4.00 X
Earnings Per Share1.45 X3.12 X
Price To Earnings To Growth3.00 X4.89 X
Target Price32.29
Number Of Employees20 K18.84 K
Beta0.27-0.15
Market Capitalization18.81 B19.03 B
Total Asset13.45 B29.47 B
Retained Earnings7.49 B9.33 B
Working Capital985.47 M1.48 B
Note: Acquisition by Steven White of 1587 shares of Hormel Foods subject to Rule 16b-3 [view details]

Hormel Foods Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Hormel . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Hormel Foods Buy or Sell Advice

When is the right time to buy or sell Hormel Foods? Buying financial instruments such as Hormel Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Short and Long Term Debt Total3.3B3.3B3.8B4.0B
Total Assets13.3B13.4B15.5B16.2B

Use Investing Ideas to Build Portfolios

In addition to having Hormel Foods in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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When determining whether Hormel Foods is a strong investment it is important to analyze Hormel Foods' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Hormel Foods' future performance. For an informed investment choice regarding Hormel Stock, refer to the following important reports:
Check out Hormel Foods Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more information on how to buy Hormel Stock please use our How to buy in Hormel Stock guide.
You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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Is Hormel Foods' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Hormel Foods. If investors know Hormel will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Hormel Foods listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.004
Dividend Share
1.108
Earnings Share
1.45
Revenue Per Share
22.203
Quarterly Revenue Growth
0.009
The market value of Hormel Foods is measured differently than its book value, which is the value of Hormel that is recorded on the company's balance sheet. Investors also form their own opinion of Hormel Foods' value that differs from its market value or its book value, called intrinsic value, which is Hormel Foods' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Hormel Foods' market value can be influenced by many factors that don't directly affect Hormel Foods' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Hormel Foods' value and its price as these two are different measures arrived at by different means. Investors typically determine if Hormel Foods is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hormel Foods' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.