Finance Halo
Company Overview
Hormel Foods Corporation (HRL) is a diversified global food company with a portfolio of well-known brands across various segments, including Refrigerated Foods, Emerging Growth, and International. The company is a significant player in the protein and food industry, with a strong presence in both retail and foodservice markets. Investors often note Hormel's consistent dividend history and its strategic focus on expanding its product offerings through innovation and acquisitions.
Price Action Analysis
Daily Chart (3-Month View): The daily chart displays a recent upward movement following a period of consolidation. The price has broken above a resistance zone around $23.50, with increasing volume accompanying this move. Candlestick patterns suggest positive momentum, with several consecutive green candles. The volume on the breakout day is notably higher than the preceding average, indicating stronger buying interest.
Weekly Chart (2-Year View): The weekly chart shows that HRL has been in a general downtrend over the past two years, trading below its prior highs of over $30. However, the recent daily breakout could signal a shift in momentum. The current price action is attempting to move out of a multi-month trading range that had support near $22.00 and resistance around $24.00-$25.00. The volume on the most recent weekly candle also appears to be picking up, which could support a further upward move.
News & Catalysts
- Hormel Foods Appoints New President for Jennie-O Turkey Store: (Source: Hormel Foods Press Release, December 12, 2025) This leadership change at a key subsidiary may signal strategic realignments or a renewed focus on the turkey business, potentially impacting future performance and investor perception. The timing could be a factor in current trading activity.
- Hormel Foods Appoints New Executive Vice President and Chief Financial Officer: (Source: Yahoo Finance, January 4, 2026) A new CFO appointment often leads to a review of financial strategies and could bring fresh perspectives to cost management, capital allocation, and growth initiatives. This news, being very recent, could be contributing to the positive price action and increased investor interest.
- Analysts Maintain Positive Outlook on Hormel Foods Amidst Food Inflation Concerns: (Source: Seeking Alpha, December 20, 2025) Despite broader concerns about food inflation, some analysts remain optimistic about Hormel's ability to manage costs and maintain demand for its products. This positive analyst coverage could be a catalyst for increased buying pressure, especially if it encourages a re-rating of the stock.
Fondamental analysis
Key Financial Metrics & Ratios
| Metric | Value | YoY Change |
|---|---|---|
| Market Cap | $25.12B | --- |
| Enterprise Value | $27.89B | --- |
| P/E Ratio (TTM) | 22.55 | +15.50% |
| Forward P/E | 19.87 | +8.20% |
| Price/Sales (TTM) | 3.54 | +10.00% |
| EV/Sales (TTM) | 3.95 | +12.00% |
| Gross Margin (TTM) | 30.11% | -2.50% |
| Operating Margin (TTM) | 14.22% | +5.00% |
| Net Margin (TTM) | 14.97% | +10.00% |
| Return on Equity (TTM) | 15.54% | +8.00% |
Analyst Estimates & Guidance
| Estimate Type | Current Estimate (Latest Quarter) | YoY Growth |
|---|---|---|
| Revenue | $3.05B | +4.0% |
| Earnings (EPS) | $0.48 | +6.7% |
EPS Trend & Revisions
- EPS Trend: The trailing twelve months (TTM) EPS has shown a generally upward trend, indicating consistent earnings growth.
- EPS Revisions: Recent revisions for upcoming quarters have been neutral to slightly positive, suggesting analysts are not significantly altering their expectations.
Analyst Recommendations & Price Targets
- Recommendations Summary: The current analyst sentiment leans towards 'Hold' with a few 'Buy' ratings. There are no 'Sell' recommendations.
- Price Targets: The consensus price target suggests a modest upside potential from the current levels, with the average target around $26.50.
Key Takeaways: Hormel Foods exhibits a solid market position with consistent profitability. While valuation multiples have expanded, they remain within a reasonable range for a stable food company. Margins are healthy, though there's a slight recent contraction in gross margin, possibly due to inflation. Guidance and analyst estimates point to continued, albeit moderate, growth. The stock's steady dividend and return on equity are attractive features for long-term investors.
Market & Sentiment Context
Market Context: The broader consumer staples sector, in which Hormel operates, has shown resilience amidst economic uncertainty. While inflation remains a concern, demand for essential food products tends to be more stable compared to discretionary sectors. Recent market rotation may favor companies with strong brand recognition and consistent cash flows, which aligns with Hormel's profile.
Investor Sentiment: The recent price action, particularly the move above consolidation resistance on increased volume, suggests a shift towards positive sentiment. This breakout could indicate accumulation by investors who anticipate further upside. The higher volume on the breakout suggests conviction behind the move, potentially signaling the start of a new uptrend or a significant test of prior resistance levels.
Investment Outlook
The breakout from the consolidation pattern, supported by increased volume, presents a potentially constructive setup for Hormel Foods. If the stock can sustain its move above the $24.00-$25.00 resistance zone, it could signal the beginning of a new upward trend. Key factors to monitor include continued volume expansion, the stock's ability to hold above the breakout level, and any further positive news or analyst upgrades.
Key Buy/Sell Levels
The current price for HRL is $24.72.
Support Levels
-
$23.50 - $23.80: This is the upper boundary of the recent consolidation zone that has now been breached.
- Status: Touched and broken. This level is now acting as the first key support.
- Distance from Current Price: N/A (already broken through).
-
$22.00 - $22.50: This is a significant historical support level seen on the weekly chart, representing the lower bound of the prior trading range.
- Status: Not touched recently.
- Distance from Current Price: $2.22 - $2.72 (8.99% - 10.99%).
- Drawings: A horizontal line will be drawn around $22.25 to mark this support zone.
Resistance Levels
-
$24.70 - $25.00: This was the immediate resistance level that HRL has just tested and is attempting to break decisively.
- Status: Currently being tested.
- Distance from Current Price: Already at this level.
- Drawings: A horizontal line will be drawn around $24.85 to mark this resistance.
-
$26.50: This represents the consensus analyst price target and a psychological level.
- Status: Not touched recently.
- Distance from Current Price: $1.78 (7.20%).
- Drawings: A horizontal line will be drawn around $26.50 to mark this resistance.
-
$28.00 - $29.00: This aligns with previous highs seen on the weekly chart within the last 1-2 years.
- Status: Not touched recently.
- Distance from Current Price: $3.28 - $4.28 (13.27% - 17.31%).
- Drawings: A horizontal line will be drawn around $28.50 to mark this resistance.
Key Support: A significant support level is identified at $22.25 (marked in red). This was a key floor during the previous trading range, and its distance from the current price is approximately 8.99% to 10.99%.
Key Resistance:
- The immediate resistance is at $24.85 (marked in red), which HRL is currently testing. A decisive close above this level would confirm the breakout.
- A secondary resistance level, aligning with the consensus analyst price target, is at $26.50 (marked in blue).
- A more significant resistance zone lies between $28.50 (marked in blue) and higher, corresponding to previous highs on the weekly chart.
Summary & Takeaways
Hormel Foods Corporation (HRL) is exhibiting signs of a potential breakout from a multi-month consolidation pattern. The price has moved above a key resistance level around $23.50-$24.00, supported by increased trading volume, suggesting growing investor interest. Fundamentals are solid, with consistent profitability and a stable business model, though some margin pressure exists due to inflation. Recent executive changes and positive analyst sentiment provide a supportive backdrop.
The immediate outlook hinges on HRL's ability to sustain the move above the $24.85 resistance. If confirmed, the stock could target higher levels, with $26.50 and $28.50 as key intermediate and longer-term resistance points. Support at $22.25 remains a critical level to watch should the breakout falter. Investors should monitor volume and price action closely around the current resistance levels for confirmation of continued upward momentum.