Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, meat and food products producer Hormel Foods (NYSE: HRL ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Hormel's business and see what CAPS investors are saying about the stock right now.
||Austin, Minn. (1891)
||Packaged foods and meats
CEO Jeffrey Ettinger (since 2006)
CFO Jody Feragen (since 2007)
|Return on Capital (Average, Past 3 Years)
||$427.1 million / $350 million
Tyson Foods (NYSE: TSN )
Smithfield Foods (NYSE: SFD )
ConAgra Foods (NYSE: CAG )
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 94% of the 250 members who have rated Hormel believe the stock will outperform the S&P 500 going forward. These bulls include WPThatcher and All-Star kinosternon, who is ranked in the top 10% of our community.
Just last week, WPThatcher tapped Hormel as a stock that just adds up: "Value + momentum + institutional buying + dividend."
Hormel's shares are up nicely over the past three months, but many Fools believe the fundamentals are still worth paying for. Thanks to a portfolio full of value-priced brands like SPAM and Dinty Moore, Hormel's three-year average return on capital tops that of rivals Tyson (6.2%), Smithfield (1.4%), and ConAgra (8.7%), as well as other food giants like General Mills (NYSE: GIS ) (11.7%) and Kraft (NYSE: KFT ) (7.2%).
CAPS All-Star kinosternon elaborates on the meaty opportunity:
Hormel has been around for nearly 120 years and has paid a dividend for 81 of those years with a nice history of dividend growth. ... This is a solid, stalwart of a company that employs folks with a real solid work ethic. I'll keep eating that occasional SPAMburger (slice of SPAM on top of a beef patty, with cheese of course) and if you don't like SPAM, that's OK, chances are you're eating some of the other products in Hormel's pantry (or refrigerator).
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