Hormel Foods Corp. Stock Rating Reaffirmed by Zacks (HRL)
Hormel Foods Corp. (NYSE:HRL)‘s stock had its “neutral” rating restated by Zacks in a research report issued to clients and investors on Tuesday, ARN reports. They currently have a $44.00 target price on the stock. Zacks‘ price objective suggests a potential upside of 6.20% from the stock’s previous close.
Zacks‘ analyst wrote, “Hormel reported improved year-over-year results for the third quarter of fiscal 2013. Earnings per share increased by a penny to $0.42 and revenues increased 7.5% to $2,159.5 million. The year-over-year increase was mainly led by a hike in all the segments, accompanied by the sales of Skippy peanut butter line, acquired in January this year. The company also intends to acquire the Chinese business of Skippy in the coming quarter. Moreover, operating profits increased for four out of five segments in the third quarter of fiscal 2013. The advertising campaigns Hormel indulges in also help the company to create awareness about its products and, in turn, increase sales. However, the increasing costs and the decreasing supply of raw materials like pork, poultry and feed grains play spoil sport for the company. The lesser barriers to entry in the meat and food market also affect the company. Moreover, the company’s strategy to grow via acquisitions can result in certain integrations risks. Therefore, we prefer to remain on the sidelines and maintain a Neutral stance on the company.”
Hormel Foods Corp. (NYSE:HRL) traded down 0.41% on Tuesday, hitting $41.26. The stock had a trading volume of 151,587 shares. Hormel Foods Corp. has a 52-week low of $28.45 and a 52-week high of $43.99. The stock has a 50-day moving average of $42.21 and a 200-day moving average of $40.41. The company has a market cap of $10.918 billion and a price-to-earnings ratio of 22.27.
Hormel Foods Corp. (NYSE:HRL) last issued its quarterly earnings data on Thursday, August 22nd. The company reported $0.42 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.45 by $0.03. The company had revenue of $2.16 billion for the quarter, compared to the consensus estimate of $2.12 billion. During the same quarter in the prior year, the company posted $0.41 earnings per share. The company’s quarterly revenue was up 7.5% on a year-over-year basis. On average, analysts predict that Hormel Foods Corp. will post $1.94 earnings per share for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Janney Montgomery Scott raised their price target on shares of Hormel Foods Corp. (NYSE:HRL) from $32.00 to $37.00 in a research note to investors on Friday, August 23rd. They now have a “sell” rating on the stock. Separately, analysts at Credit Suisse upgraded shares of Hormel Foods Corp. (NYSE:HRL) from a “neutral” rating to an “outperform” rating in a research note to investors on Monday, July 29th. They now have a $46.00 price target on the stock, up previously from $39.00. Finally, analysts at BMO Capital Markets upgraded shares of Hormel Foods Corp. (NYSE:HRL) from a “market perform” rating to an “outperform” rating in a research note to investors on Friday, July 12th. They now have a $49.00 price target on the stock, up previously from $41.00.
One investment analyst has rated the stock with a sell rating, three have issued a hold rating and six have given a buy rating to the company’s stock. Hormel Foods Corp. has an average rating of “Buy” and a consensus price target of $44.11.
Hormel Foods Corporation is primarily engaged in the production of a variety of meat and food products and the marketing of those products throughout the United States and internationally.
To view Zacks’ full report, visit www.zacks.com
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