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Hormel Foods (HRL) closed the most recent trading day at $43.25, moving +0.53% from the previous trading session. The stock outpaced the S&P 500’s daily gain of 0.17%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.44%.
Coming into today, shares of the maker of Spam canned ham, Dinty Moore stew and other foods had gained 2.55% in the past month. In that same time, the Consumer Staples sector gained 1.18%, while the S&P 500 gained 3.19%.
Investors will be hoping for strength from Hormel Foods as it approaches its next earnings release, which is expected to be December 9, 2021. The company is expected to report EPS of $0.50, up 16.28% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.22 billion, up 32.89% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Hormel Foods. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Hormel Foods is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Hormel Foods currently has a Forward P/E ratio of 21.77. For comparison, its industry has an average Forward P/E of 11.44, which means Hormel Foods is trading at a premium to the group.
Also, we should mention that HRL has a PEG ratio of 3.01. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Food – Meat Products was holding an average PEG ratio of 1.53 at yesterday’s closing price.
The Food – Meat Products industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 14% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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