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5-Star Stocks Poised to Pop: Hormel Foods

Based on the aggregated intelligence of 180,000-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 coveted five-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.

Hormel facts

Headquarters (Founded)

Austin, Minn. (1891)

Market Cap

$7.82 billion

Industry

Packaged foods and meats

Trailing-12-Month Revenue

$7.85 billion

Management

CEO Jeffrey Ettinger
CFO Jody Feragen

Return on Equity (Average, Past 3 Years)

17.1%

Cash/Debt

$573.5 million / $250 million

Dividend Yield

1.7%

Competitors

ConAgra Foods (NYSE: CAG  )
Kraft (NYSE: KFT  )
Tyson Foods (NYSE: TSN  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 274 members who have rated Hormel believe the stock will outperform the S&P 500 going forward. These bulls include Cinquero and All-Star BKITU.

This past summer, Cinquero tapped Hormel as a scrumptious international selection: "[G]lobal food player. [G]lobal population growth and rise of the East."

Over the past three years, Hormel has even grown its dividend at a solid rate of 11.4% annually. That's faster than competitors like ConAgra (6.6%), Kraft (2.4%), and Tyson (0%).

CAPS All-Star BKITU elaborates on the bull case:

Exactly the type of stock that will perform well as globalization increases. Cheap staples/consumables for convenience and comfort, simple luxuries, and so on. Increasing middle classes in developing countries will be looking for things like this. On top of that, the company is a proven performer, and has excellent revenue and earnings per-employee versus its peers in the market.

What do you think about Hormel, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track Hormel? Add it to your watchlist.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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DocumentId: 1575190, ~/Articles/ArticleHandler.aspx, 5/26/2012 9:52:59 PM

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Related Tickers

5/25/2012 4:02 PM
HRL $30.15 Up +0.46 +1.55%
Hormel Foods Corp CAPS Rating: *****
TSN $19.32 Up +0.28 +1.47%
Tyson Foods, Inc. CAPS Rating: ***
KFT $38.57 Down -0.12 -0.31%
Kraft Foods, Inc. CAPS Rating: *****
CAG $25.25 Down -0.01 -0.04%
ConAgra Foods, Inc… CAPS Rating: *****

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