Please ensure Javascript is enabled for purposes of website accessibility

4-Star Stocks Poised to Pop: Hormel Foods

By Brian D. Pacampara, CFA - Updated Apr 5, 2017 at 8:04PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Market-trouncing returns could be written in this 5-Star.

Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, food producer Hormel (NYSE:HRL) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

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, Minnesota (1995)

Market Cap

$3.65 billion

Industry

Packaged Foods & Meats

TTM Revenue

$6.75 billion

Management

CEO Jeffrey Ettinger (since 2006)
CFO Jody Feragen (since 2007)

Return on Equity (average last three years)

16%

Dividend Yield

2.8%

Competitors

Kraft Foods (NYSE:KFT),
Sara Lee (NYSE:SLE)

CAPS members bullish on HRL also bullish on

Wal-Mart Stores (NYSE:WMT),
Johnson & Johnson (NYSE:JNJ)

CAPS members bearish on HRL also bearish on

Tyson Foods (NYSE:TSN),
Ford Motor (NYSE:F)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 169 of the 178 members who have rated Hormel -- some 95% -- believe the stock will outperform the S&P 500 going forward. These Foolish bulls include southsideandy and saunafool.

Last month, southsideandy noted that the company "might be affected negatively by the frugality of the marketplace, but if you look at the variety of brands and products Hormel owns, it appears well-positioned, short- and long-term, to weather most any storm."

In a pitch from last week, saunafool shares that sentiment, tapping the stock as a tasty way to recession-proof your portfolio:

Food producers will survive the downturn, no matter how bad it gets. People have to eat. Plus, the fall in energy prices will work its way into feed and hog prices, boosting profits for Hormel. Where they took a hit when oil prices went up, they get it back when prices go down.

What do you think about Hormel, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Kraft and Johnson & Johnson are Motley Fool Income Investor picks. Wal-Mart is a selection of Inside Value. The Fool's disclosure policy always gets a perfect score.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Hormel Foods Corporation Stock Quote
Hormel Foods Corporation
HRL
$49.85 (-0.02%) $0.01
Wal-Mart Stores, Inc. Stock Quote
Wal-Mart Stores, Inc.
WMT
$129.14 (0.21%) $0.27
Kraft Foods Group, Inc. Stock Quote
Kraft Foods Group, Inc.
KRFT.DL
Ford Motor Company Stock Quote
Ford Motor Company
F
$15.50 (3.06%) $0.46
Johnson & Johnson Stock Quote
Johnson & Johnson
JNJ
$170.67 (0.29%) $0.49
Tyson Foods, Inc. Stock Quote
Tyson Foods, Inc.
TSN
$79.36 (-0.70%) $0.56
The Hillshire Brands Company Stock Quote
The Hillshire Brands Company
HSH.DL

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
373%
 
S&P 500 Returns
122%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/10/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.