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Hormel Foods (HRL) Slips to Hold on Lingering Macro Risks
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On Dec 13, 2016, Zacks Investment Research downgraded Hormel Foods Corporation (HRL - Free Report) to a Zacks Rank #3 (Hold) from a Zacks Rank #2 (Buy). Going by the Zacks model, companies holding a Zacks Rank #3 have high chances of performing in line with the broader market over the next quarters.
Why Should You Hold the Stock?
Over the last 30 days, Hormel Foods’ shares recorded a negative average return of 1.43% as against the Zacks categorized Food-Meat Products industry’s negative return of 5.11%.
We believe that several headwinds in the market might hurt the company’s revenues and profitability in the quarters ahead. For instance, appreciation of the U.S. dollar has been weighing over Hormel Foods’ international revenues and margins in recent times. A stronger U.S. dollar might affect the company’s International & Other and Specialty Foods segments’ revenues in the upcoming quarters. Moreover, unfavorable input prices, loss of market demand share or outbreak of any livestock disease might impact both the top and bottom lines, in the near term.
However, we note that the Zacks Consensus Estimate for the stock has moved north, for both fiscal 2017 and 2018, in the last 30 days.
This indicates brokers’ positive sentiments toward the stock. We believe that this optimistic outlook is a result of the faith in the current growth initiatives of the company.
For instance, higher sales of certain major branded products and strategic marketing initiatives are likely to boost revenues, moving ahead. Notably, higher revenues and lower prices of inputs, such as hog, pork, corn & soybean meal and grain, are expected to widen margin. Hormel Foods anticipates earnings within the range of $1.71–$1.77 in fiscal 2017, representing a 4−8% year-over-year increment in earnings.
Dean Foods Company has an average positive earnings surprise of 5.44% for the last four quarters.
Edgewell Personal Care Company’s positive earnings surprise is 0.53% for the trailing four quarters.
Ollie's Bargain Outlet Holdings, Inc.’s positive earnings surprise is 17.64% for the last four quarters.
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Hormel Foods (HRL) Slips to Hold on Lingering Macro Risks
On Dec 13, 2016, Zacks Investment Research downgraded Hormel Foods Corporation (HRL - Free Report) to a Zacks Rank #3 (Hold) from a Zacks Rank #2 (Buy). Going by the Zacks model, companies holding a Zacks Rank #3 have high chances of performing in line with the broader market over the next quarters.
Why Should You Hold the Stock?
Over the last 30 days, Hormel Foods’ shares recorded a negative average return of 1.43% as against the Zacks categorized Food-Meat Products industry’s negative return of 5.11%.
We believe that several headwinds in the market might hurt the company’s revenues and profitability in the quarters ahead. For instance, appreciation of the U.S. dollar has been weighing over Hormel Foods’ international revenues and margins in recent times. A stronger U.S. dollar might affect the company’s International & Other and Specialty Foods segments’ revenues in the upcoming quarters. Moreover, unfavorable input prices, loss of market demand share or outbreak of any livestock disease might impact both the top and bottom lines, in the near term.
However, we note that the Zacks Consensus Estimate for the stock has moved north, for both fiscal 2017 and 2018, in the last 30 days.
HORMEL FOODS CP Price and Consensus
HORMEL FOODS CP Price and Consensus | HORMEL FOODS CP Quote
This indicates brokers’ positive sentiments toward the stock. We believe that this optimistic outlook is a result of the faith in the current growth initiatives of the company.
For instance, higher sales of certain major branded products and strategic marketing initiatives are likely to boost revenues, moving ahead. Notably, higher revenues and lower prices of inputs, such as hog, pork, corn & soybean meal and grain, are expected to widen margin. Hormel Foods anticipates earnings within the range of $1.71–$1.77 in fiscal 2017, representing a 4−8% year-over-year increment in earnings.
Stocks to Consider
Better-ranked stocks in the industry include Dean Foods Company , Edgewell Personal Care Company (EPC - Free Report) and Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) . All the three stocks currently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dean Foods Company has an average positive earnings surprise of 5.44% for the last four quarters.
Edgewell Personal Care Company’s positive earnings surprise is 0.53% for the trailing four quarters.
Ollie's Bargain Outlet Holdings, Inc.’s positive earnings surprise is 17.64% for the last four quarters.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>