Consumer Staples Giants Face EPS Downgrades, Pernod Ricard Rated F
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Earnings Downgrades: Pernod Ricard SA's EPS revision grade of F indicates a significant decline in future profitability, likely diminishing investor confidence and negatively impacting its market performance.
- Industry-Wide Pressure: Both Heineken N.V. and Hormel Foods Corporation received D- EPS revision grades, reflecting the broader consumer staples sector's struggle with declining profitability, which may lead to an overall drop in stock prices.
- Rating Implications: Several companies have EPS revision grades below D, indicating severe fundamental weaknesses, and analysts' downward revisions could exacerbate investor concerns, thereby affecting shareholder returns.
- Market Reaction Expectations: As earnings season approaches, analysts' downgrades of profitability expectations for these consumer staples may lead to increased stock price volatility, necessitating cautious navigation of potential market risks by investors.
Analyst Views on HRL
Wall Street analysts forecast HRL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HRL is 27.17 USD with a low forecast of 25.00 USD and a high forecast of 31.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
3 Buy
3 Hold
0 Sell
Moderate Buy
Current: 23.500
Low
25.00
Averages
27.17
High
31.00
Current: 23.500
Low
25.00
Averages
27.17
High
31.00
About HRL
Hormel Foods Corporation is a global-branded food company. The Company develops, processes, and distributes a range of food products in a variety of markets. Its segments include Retail, Foodservice, and International. The Retail segment is primarily engaged in the processing, marketing, and sale of food products sold predominantly in the retail market. This segment also includes the Company’s MegaMex Foods, LLC joint venture. The Foodservice segment consists primarily of the processing, marketing, and sale of food products to foodservice, convenience store, and commercial customers located in the United States. The International segment processes, markets, and sells its products internationally. This segment also includes the results from the Company’s international joint ventures, international equity method investments, and international royalty arrangements. It has a global presence within several major international markets, including Australia, Brazil, Canada, China, and England.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
