HRL Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Hormel Foods Corp (HRL) is not a strong buy at the moment for a beginner, long-term investor with $50,000-$100,000 available for investment. The stock's technical indicators are bearish, financial performance is weak, and there are no significant positive catalysts in the near term to justify immediate entry. While the company offers a strong dividend yield and has a history of dividend growth, the current market sentiment and financial challenges suggest waiting for more favorable conditions or signs of recovery before investing.
The technical indicators for HRL are bearish. The MACD is negatively expanding (-0.156), the RSI is neutral at 23.199, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading below key support levels (S1: 23.677, S2: 23.191), and the pre-market price of 23.43 is below these levels, suggesting further downside potential.
Hormel Foods has a strong dividend yield of 4.7% and a 60-year history of consecutive dividend increases, making it attractive for long-term income-focused investors.
The appointment of Will Bonifant as Chief Supply Chain Officer could improve operational efficiency and support long-term strategy.
Weak financial performance in Q4 2025, with net income dropping by -125.49% YoY and EPS declining by -125.00% YoY.
Analysts have lowered price targets recently, citing challenges in input costs and execution risks.
Bearish technical indicators and a lack of significant hedge fund or insider activity suggest limited near-term upside.
In Q4 2025, Hormel Foods reported a 1.52% YoY increase in revenue to $3.19 billion. However, net income dropped significantly to -$56.14 million (-125.49% YoY), and EPS fell to -$0.10 (-125.00% YoY). Gross margin also declined to 14.13%, down -14.93% YoY, reflecting cost pressures and operational inefficiencies.
Analysts are mixed but leaning cautious. Recent ratings include price target reductions from Stephens ($25 from $27) and Barclays ($30 from $31), citing challenges in input costs and mixed market conditions. However, JPMorgan raised its price target to $28 from $27, noting potential for an upward earnings inflection point despite execution risks.
