Hormel: One Of The Safest Stocks In The Market Looks Like A Potential Double
Joe Springer • 33 Comments
Joe Springer • 33 Comments
Premium-Priced Hormel Sells Off On A Less Than Perfect Quarter
Stephen Simpson, CFA
Stephen Simpson, CFA
Feb. 19, 2014, 5:30 PM| Feb. 19, 2014, 5:30 PM | 3 Comments
Feb. 6, 2014, 9:33 AM| Feb. 6, 2014, 9:33 AM | 1 Comment
Jan. 12, 2014, 7:10 AM
- The U.S. pork industry is attempting to cope with a virus that has killed thousands of piglets since first appearing in April and has boosted prices in the $9B hog-futures market.
- Porcine epidemic diarrhea (PED) virus is only fatal to young pigs and is not harmful to humans, but it could cause the loss of 2-3M head, or as much as 3% of the industry's total.
- Hormel Foods (HRL) has already warned that FY 2014 earnings could suffer the effects of "potentially volatile hog costs" because of the virus. Tyson Foods (TSN) is also a pork producer.
- Still, the USDA has predicted that pork output will increase 2% this year to 23.6B pounds, due to heavier hog weights.
- ETFs: UBC, LSTK, COW
Jan. 7, 2014, 6:38 AM
- Despite lagging the S&P 500, food stocks had a strong year in 2013. We believe investors should remain selective in their allocation of capital by placing a greater emphasis on stock picking.
- Overall, in terms of themes for our packaged food/beverage coverage universe in 2014, we expect sluggish but gradually improving food volume trends, increased promotional intensity (funded by easing commodity costs and retailers fighting for traffic share) and a relatively active M&A environment.
- Accordingly, we prefer companies with solid organic growth prospects [Green Mountain Coffee Roasters (GMCR); Amira Nature Foods (ANFI); J & J Snack Foods Corp. (JJSF)], exposure to declining commodity costs [GMCR; Hormel Foods (HRL); The J.M. Smucker Company (SJM); Flowers Foods, Inc. (FLO)], exposure to company specific margin enhancing opportunities [FLO; GMCR, ConAgra Foods (CAG)] and ability to benefit from accretive M&A (SJM, JJSF and CAG).
- On the non-branded part of our coverage universe, Ingredion (INGR) is our top pick followed by Tyson Foods (TSN) and Dean Foods (DF).
Dec. 19, 2013, 8:29 AM
- Consumer Reports reports that close to 50% of all the raw chicken breasts it sampled in the U.S. during a study tested positive for "superbug" bacteria.
- The publication suggests a new law should be implemented to restrict antibiotic use with livestock in order to reduce the occurrence of the dangerous bacteria in food.
- Chicken sellers face a risk of higher costs if regulations tighten.
- Related stocks: TSN, SAFM, YUM, BWLD, PPC, HRL.
Nov. 26, 2013, 10:43 AM| Nov. 26, 2013, 10:43 AM | 1 Comment
Nov. 26, 2013, 7:20 AM
- Hormel Foods Corporation (HRL) declares $0.20/share quarterly dividend, 17.6% increase from prior dividend of $0.17.
- Forward yield 1.88%
- Payable Feb. 14; for shareholders of record Jan 22; ex-div Jan 17.
Nov. 26, 2013, 6:18 AM
- Hormel Foods (HRL): FQ4 EPS of $0.58 beats by $0.04.
- Revenue of $2.32B (+7% Y/Y) beats by $0.02B. (PR)
Nov. 26, 2013, 12:05 AM
Nov. 25, 2013, 5:30 PM
Nov. 21, 2013, 10:12 AM
- New meat labeling rules in the U.S. that start on Saturday aim to help consumers understand exactly where their products have originated from in the wake of meat contamination issues.
- The new labels will include a biography of sorts on the animals consumers are eating - with detailed information on where livestock was born, raised, and slaughtered.
- The USDA estimates that compliance will cost the meat industry between $53.1M and $192.1M, although the development could be an advantage to U.S. producers.
- Related stocks: Tyson Foods (TSN), Hormel Foods (HRL), Sanderson Farms (SAFM), Seaboard Corporation (SEB), Hillshire Brands (HSH).
Nov. 7, 2013, 10:00 AM
- The FDA says it will propose measures to dramatically limit artificial trans fats from products sold in the U.S.
- Many varieties of packaged foods and frozen foods contain trans fats as well as items commonly sold at restaurants.
- Cutting the fat: Nestle (NSRGY), PepsiCo (PEP), Tyson Foods (TSN), Mondelez International (MDLZ), Unilever (UL), General Mills (GIS), Kraft Foods (KRFT), Kellogg (K), Dean Foods (DF), Campbell Soup (CPB), Hormel (HRL), Hershey (HSY), Pilgrims Pride (PPC),
Sep. 6, 2013, 9:07 AM| Sep. 6, 2013, 9:07 AM
Aug. 22, 2013, 11:20 AM
- Hormel Foods (HRL +1.1%) trades higher after putting up a mixed quarter.
- Operating profits were higher for four out of five of the company's segments but were down 26% for the refrigerated foods segment which accounts for around half of net sales.
- Overall, volumes were up 3% for the quarter.
- Full year EPS outlook affirmed at $1.88-1.96 versus consensus of $1.95. (PR)
Aug. 22, 2013, 6:32 AM
- Hormel Foods (HRL): FQ3 EPS of $0.42 misses by $0.03.
- Revenue of $2.16B (+8% Y/Y) beats by $0.04B. (PR)
Aug. 22, 2013, 12:05 AM
Hormel Foods Corp. engages in the production of meat and food products. The company markets its products through its subsidiary, Hormel Foods International Corp. It operates business through five segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, Specialty Foods and Other.... More
Sector: Consumer Goods
Industry: Meat Products
Country: United States
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