Hormel Foods Corporation (HRL): Today's Featured Food & Beverage Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Hormel Foods Corporation ( HRL) pushed the Food & Beverage industry lower today making it today's featured Food & Beverage laggard. The industry as a whole closed the day up 0.4%. By the end of trading, Hormel Foods Corporation fell 44 cents (-1.1%) to $38.98 on average volume. Throughout the day, 1.1 million shares of Hormel Foods Corporation exchanged hands as compared to its average daily volume of 936,500 shares. The stock ranged in price between $38.84-$39.50 after having opened the day at $39.47 as compared to the previous trading day's close of $39.42. Other companies within the Food & Beverage industry that declined today were: MGP Ingredients ( MGPI), down 8.7%, Crumbs Bake Shop ( CRMB), down 5%, SkyPeople Fruit Juice ( SPU), down 4.8%, and Central European Distribution ( CEDC), down 4.1%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Hormel Foods Corporation engages in the production and marketing of various meat and food products. Its meat products include fresh, frozen, cured, smoked, cooked, and canned meat. Hormel Foods Corporation has a market cap of $10.22 billion and is part of the consumer goods sector. The company has a P/E ratio of 20.7, above the S&P 500 P/E ratio of 17.7. Shares are up 26.3% year to date as of the close of trading on Wednesday. Currently there are two analysts that rate Hormel Foods Corporation a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates Hormel Foods Corporation as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Alico ( ALCO), up 6.2%, Gruma S.A.B. de C.V ( GMK), up 4.9%, Treehouse Foods ( THS), up 4.5%, and Leading Brands ( LBIX), up 4.2%, were all gainers within the food & beverage industry with Coca-Cola ( KO) being today's featured food & beverage industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the food & beverage industry could consider PowerShares Dynamic Food & Beverage ( PBJ) while those bearish on the food & beverage industry could consider PowerShares DB Agriculture Sht ETN ( ADZ).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Jim Cramer on Abercrombie, Dollar Tree, Sears, Burlington, PVH, Hormel, Smuckers, Amazon, Whole Foods and HP

In Retailers' Gang War, This Is Why I Am Rooting for Walmart: Market Recon

Dow Scores Ninth Straight Record Close With Tiny Gains, S&P 500 at All-Time High