Hormel Foods CorporationNYSE
Hormel: One Of The Safest Stocks In The Market Looks Like A Potential Double
Joe Springer • 33 Comments
Joe Springer • 33 Comments
Fri, Oct. 7, 12:26 PM
- Tyson Foods (NYSE:TSN) is now down 10.2% on concerns raised by Pivotal Research about a class action lawsuit that alleges major collusion among producers. The investment firm thinks the legal action will shine a big regulatory spotlight on the sector.
- Tyson has gone on record to dispute the "speculative conclusions" raised in the Pivotal Research report, but clearly the genie is out of the bottle.
- Sanderson Farms (SFM -1.6%) and Pilgrim's Pride (PPC -4.7%) also sharply lower in midday action. Hormel (HRL -0.6%) and JBS (OTCQX:JBSAY -1%), which were not named in the class action lawsuit, trade roughly in-line with broad market averages.
- Previously: Tyson Foods -6% after stinging downgrade from Pivotal Research (Oct. 7)
Wed, Sep. 28, 8:29 AM
- Hormel Foods (NYSE:HRL) announces a change to its bylaws as approved by the board.
- Under the revision, a majority vote will be standard in uncontested elections of directors, while landing a plurality vote will stay the standard in contested director elections.
- Shares of Hormel are now up 7% over the last 90 days after yesterday's 2.46% gain.
- SEC Form 8-K
Mon, Sep. 26, 4:34 PM
Mon, Sep. 12, 12:30 PM
- Hormel Foods (HRL +0.6%) backed prior guidance for 2016 EPS to fall in a range of $1.60 to $1.64 during the company's presentation last week at the Barclays Global Consumer Staples Conference.
- Execs talked quite a bit about global growth opportunities, including the potential for more M&A.
- "We will continue to seek opportunities to expand our global footprint through acquisition," said COO Jim Snee.
- Justin's and Muscle Milk are two of the major pickups by Hormel over the last several years.
- Hormel trades very close to the mid-point of its 52-week range of $29.93 to $45.72. The forward P/E ratio on the meat stock is just under 22.
- Hormel conference presentation
Tue, Sep. 6, 5:32 PM
- Hormel Foods (NYSE:HRL) says Jeffrey Ettinger will retire as CEO effective on Oct. 30, to be succeeded by current President and COO James Snee.
- Ettinger, who will continue to serve as Chairman, joined HRL in 1989 and served as Chairman, President and CEO during 2006-15, when Snee was appointed President and Ettinger became Chairman and CEO; Snee also joined the company in 1989.
Mon, Aug. 22, 7:16 AM
- Credit Suisse upgrades Hormel (NYSE:HRL) to an Outperform rating after having the food stock set at Neutral.
- Continued volume growth is expected in a cost-cutting environment. Last week, Hormel reported a 12% Y/Y increase in operating profit for Q2.
- The investment firm assigns a price target of $43 to Hormel.
- HRL +0.91% premarket to $39.01.
Thu, Aug. 18, 7:50 AM
- Hormel Foods (NYSE:HRL) reports volume rose 1% in FQ3.
- Revenue by segment: Grocery Products: $399.34M (+2.9%); Refrigerated Foods: $1.16B (+9.4%); Jennie-O Turkey Store: $403.95M (+20%); Specialty Foods: $212.2M (-25%); International & Other: $131.59M (+5.2%).
- Gross profit rate increased 190 bps to 20.6%.
- SG&A expense rate grew 60 bps to 9%.
- Operating margin rate up 130 bps to 11.9%.
- The company expects FY2016 diluted EPS to be in the range of $1.60 to $ 1.64.
- HRL +0.69% premarket.
Thu, Aug. 18, 6:33 AM
Wed, Aug. 17, 5:30 PM
Mon, Jul. 11, 2:12 PM
- A bill requiring food companies to label GMO ingredients was approved by the U.S. Senate by a 63 to 30 vote and now heads to the House of Representatives.
- The negotiated bill requires food companies to label genetically modified food by a phrase, symbol on the package, or a bar code that can be scanned by smartphones.
- The Department of agriculture still has two years to write the precise labeling rules if the House approves the bill.
- The passage of the bill is seen as a positive for the food sector as the alternative of having to adhere to state-by-state rules could create operational chaos for national sellers.
- Food stocks: SENEA, SENEB, THS, OTCPK:NCRA, CPB, MDLZ, GIS, OTCPK:NSRGY, FLO, CAG, DF, SJM,DF, ANFI, JJSF, WWAV, UL, OTCQX:DANOY, OTCPK:PLATF, POST, K, PEP, DMND, PF, HAIN, KO, BETR, KHC, WILC, PPC, PF, LWAY, HRL, TSN, DTEA, SAFM, BRID.
Wed, Jun. 15, 10:05 AM
- Panera Bread (PNRA +0.1%) is beginning to flex its muscles in the grocery store channel in what could be an increasing challenge to major food companies such as General Mills (GIS +0.2%), Campbell Soup (CPB -0.5%), Hormel Foods (HRL +0.2%), and Kraft Heinz (KHC +0.1%).
- Some analysts think that Panera's strong brand recognition with consumers as a healthy alternative gives it a chance to dent the dominance of canned soup and canned meat sellers.
- Campbell Soup CEO Denise Morrison was put on the defensive on the company's last earnings call about the threat from Panera and others in the chilled soup category.
- Morrison talked about the smaller base that Panera is growing from, but also conceded that the company would have to stay active in the fresh and organic categories - instead of just relying on its iconic brands.
- Campbell Soup earnings call transcript
- Previously: Panera Bread's clean commitment extends to grocery stores (June 15)
Mon, Jun. 6, 10:04 AM
- BMO Capital takes a dimmer view on the upside for meat producers after factoring in the strong rally in the sector which has pushed up valuation levels.
- Tyson Foods (TSN -3.4%) and Pilgrim's Pride (PPC -3%) are both moved by BMO to Market Perform from Outperform.
- BMO set a price target of $69 on TSN and PPC caught a $27 PT.
- It's a weak day across the sector with Sanderson Farms (SAFM -1.9%), Hormel (HRL -0.7%) and JBS (OTCQX:JBSAY -2.3%) ADRs all lower.
- Related sector news: Plant-based hamburger startup creates some interesting sizzle (June 4)
Thu, Jun. 2, 7:46 AM
- May monthly performance was: +0.76%
- 52-week performance vs. the S&P 500 is: +7%
- No dividends were paid in May
- Top 10 Holdings as of 4/30/2016: Consolidated Edison Inc (ED): 2.09%, Leggett & Platt Inc (LEG): 2.07%, S&P Global Inc (SPGI): 2.07%, Brown-Forman Corp Class B (BF.B): 2.07%, Colgate-Palmolive Co (CL): 2.06%, C.R. Bard Inc (BCR): 2.05%, Hormel Foods Corp (HRL): 2.05%, W.W. Grainger Inc (GWW): 2.05%, Clorox Co (CLX): 2.05%, McCormick & Co Inc Non-Voting (MKC): 2.05%
Mon, May 23, 4:58 PM
Mon, May 23, 9:39 AM
- Athlos Research forecasts food input costs will rise 1.9% over the next six months which will increase the pressure on companies to use pricing to offset the inflation.
- Strong price gains are expected in the fruits/vegetables, softs/sweetners, and oils categories - while proteins, dairy, and grainscosts are expected to fall back.
- The impact on profit varies across the sector. A negative EBIT impact from cost inflation is forecast for Coca-Cola (NYSE:KO), PepsiCo (NYSE:PEP), Cott (NYSE:COT), Dr. Pepper Snapple (NYSE:DPS), Campbell Soup (NYSE:CPB), Pinnacle Foods (NYSE:PF), and Hormel (NYSE:HRL). Foods cost inflation will have a positive impact on EBIT for Post Holdings (NYSE:POST), Dean Foods (NYSE:DF), Hershey (NYSE:HSY), and Fresh Del Monte Products (NYSE:FDP), according to the Athlos estimate.
Wed, May 18, 7:57 AM
- Hormel (NYSE:HRL) announces it acquired Justin's Specialty Nut Butter brand for an undisclosed amount.
- The company says the pickup will help complement its offerings aimed at younger health-conscious consumers.
- More details on the Justin's integration from management are expected on the post-earnings conference call.
- HRL +0.41% premarket to $38.95.
- Previously: Hormel Foods beats by $0.01, revenue in-line (May 18)
- Previously: Hormel Foods raised FY2016 earnings guidance post strong FQ2 results (May 18)