New Lifetime High For Hormel Foods (HRL) - TheStreet

Trade-Ideas LLC identified

Hormel Foods

(

HRL

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Hormel Foods as such a stock due to the following factors:

  • HRL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $88.4 million.
  • HRL has traded 26,023 shares today.
  • HRL is trading at a new lifetime high.

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More details on HRL:

Hormel Foods Corporation produces and markets various meat and food products worldwide. The company operates in five segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, Specialty Foods, and International & Other. The stock currently has a dividend yield of 1.6%. HRL has a PE ratio of 28. Currently there are 2 analysts that rate Hormel Foods a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Hormel Foods has been 1.0 million shares per day over the past 30 days. Hormel has a market cap of $19.5 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.96 and a short float of 6.2% with 7.12 days to cover. Shares are up 41.2% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Hormel Foods as a

buy

. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, solid stock price performance, largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • HORMEL FOODS CORP has improved earnings per share by 9.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HORMEL FOODS CORP increased its bottom line by earning $2.54 versus $2.23 in the prior year. This year, the market expects an improvement in earnings ($2.92 versus $2.54).
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 43.31% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • HRL's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.79 is somewhat weak and could be cause for future problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Food Products industry and the overall market on the basis of return on equity, HORMEL FOODS CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • HRL, with its decline in revenue, slightly underperformed the industry average of 1.5%. Since the same quarter one year prior, revenues slightly dropped by 5.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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