Hormel Foods Corporation (HRL): Today's Featured Consumer Goods 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 Consumer Goods sector lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day up 0.6%. By the end of trading, Hormel Foods Corporation fell $1.46 (-3.6%) to $39.19 on heavy volume. Throughout the day, 2,834,588 shares of Hormel Foods Corporation exchanged hands as compared to its average daily volume of 900,700 shares. The stock ranged in price between $38.51-$39.41 after having opened the day at $38.81 as compared to the previous trading day's close of $40.65. Other companies within the Consumer Goods sector that declined today were: Tufco Technologies ( TFCO), down 8.3%, Emerson Radio ( MSN), down 6.9%, DS Healthcare Group ( DSKX), down 6.7% and Tianli Agritech ( OINK), down 6.5%.
  • 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 $10.6 billion and is part of the food & beverage industry. The company has a P/E ratio of 21.6, above the S&P 500 P/E ratio of 17.7. Shares are up 30.2% year to date as of the close of trading on Monday. Currently there are 3 analysts that rate Hormel Foods Corporation a buy, 1 analyst rates it a sell, and 5 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Global-Tech Advanced Innovations ( GAI), down 8.2%, Verso Paper ( VRS), down 7.5%, Synutra International ( SYUT), down 6.8% and SGOCO Group ( SGOC), down 6.4% , were all gainers within the consumer goods sector with VF Corporation ( VFC) being today's featured consumer goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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