Tech Stocks Volatility Rises, Strong Dividend Stocks Preferred
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 13 2026
0mins
Source: Fool
- Increased Market Volatility: Large-cap tech stocks have reached near 25-year high valuations after a three-year bull market, prompting market watchers to warn of a potential correction, necessitating investors to prepare for possible volatility.
- Recommended Strong Stocks: Hormel and McCormick, as consumer staples companies, have historically outperformed during market downturns, with Hormel boasting a 59-year streak of dividend increases and a current yield of 4.69%.
- Stable Dividend Yields: Despite Hormel and McCormick posting negative returns over the past one and five years, their dividends remain robust, with McCormick achieving 39 consecutive years of dividend growth and a yield of 2.85%.
- Analysts Favorable Outlook: Hormel has a price target of $27.50, suggesting a 12% upside, while McCormick's target is $73, indicating an expected 8% return over the next 12 months, making them suitable for providing stable income and protection in a volatile market.
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Analyst Views on HRL
Wall Street analysts forecast HRL stock price to rise
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 23.030
Low
26.00
Averages
27.40
High
30.00
Current: 23.030
Low
26.00
Averages
27.40
High
30.00
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.
Long-Term Investment Value of Coca-Cola, Costco, and Hormel Foods
- Coca-Cola's Stability: Operating in over 200 countries with a portfolio of more than 200 beverage brands, Coca-Cola reported a 5% organic revenue increase for fiscal year 2025 and expects a 4% to 5% growth in 2026, highlighting its strong potential as a long-term investment.
- Costco's Membership Model: Costco's impressive membership renewal rate and competitive pricing strategy led to an 8.1% net sales increase in fiscal year 2025, further improving to 8.7% in the first two quarters of 2026, showcasing its robust growth momentum in the retail market.
- Hormel Foods' Dividend King Status: As a Dividend King, Hormel Foods has raised its dividend for 60 consecutive years, and despite recent challenges, it reported a 2% net sales growth last quarter while reaffirming its 2026 organic sales growth guidance of 1% to 4%, demonstrating its stable business foundation.
- Attractiveness for Long-Term Investment: These three companies not only possess strong brand influence in their respective sectors but also exhibit solid financial performance and consistent dividend payments, making them suitable for long-term investors seeking stable returns over the coming decades.
See More
Investment Value of Coca-Cola, Costco, and Hormel
- Coca-Cola's Stability: Coca-Cola has consistently increased its dividends for six decades, currently boasting a yield of 2.67%, and its asset-light business model ensures high profitability, making it attractive for long-term investors.
- Costco's Growth Potential: Costco reported an 8.1% increase in net sales for fiscal year 2025, improving to 8.7% in the first two quarters of 2026; despite a low dividend yield of 0.52%, its membership renewal rates and international expansion strategies are set to drive future growth.
- Hormel's Investment Opportunity: As another Dividend King, Hormel has raised its dividends for 60 years, with a current yield of 5.0%; although its stock has dropped 15% over the past year, its latest earnings report shows net sales growth for five consecutive quarters, demonstrating strong business resilience.
- Long-term Investment Choices: These three companies, with their strong brand recognition and solid business fundamentals, represent ideal options for long-term investors, especially as the defensive characteristics of consumer staples become increasingly important amid economic uncertainties.
See More
Market Sentiment Shifts to Fear Zone
- Market Sentiment Decline: The CNN Money Fear & Greed Index fell from 45.8 to 44.4, indicating a shift to the fear zone, which may weaken investor confidence and negatively impact stock performance.
- Jobless Claims Rise: Initial jobless claims in the U.S. increased by 4,000 to 212,000, close to the market estimate of 215,000, reflecting potential softness in the labor market that could adversely affect consumer spending.
- Major Index Performance: The Dow Jones rose by about 17 points to 49,499.20, while the S&P 500 fell 0.54% to 6,908.86, and the Nasdaq Composite dipped 1.18% to 22,878.38, indicating overall market pressure.
- Sector Performance Divergence: While most sectors closed lower, with consumer discretionary, information technology, and communication services suffering the largest losses, industrials and financial stocks bucked the trend, suggesting some resilience within the market.
See More
Hormel (HRL) Q1 2026 Earnings Call Transcript
See More
U.S. Stocks Decline Midway, S&P 500 Falls Over 1%
- Market Performance: U.S. stocks traded lower midway through the session, with the S&P 500 falling over 1%, indicating a weakening market trend that could impact investor confidence.
- Company Earnings: Hormel Foods Corp (NYSE:HRL) reported mixed Q1 FY26 results, with adjusted EPS of 34 cents beating the 32 cents consensus, but sales of $3.03 billion missed the $3.07 billion estimate, reflecting sales challenges faced by the company.
- Sector Performance: Energy shares gained 1%, while information technology stocks fell by 2.6%, indicating varied market reactions across sectors that may influence investor asset allocation strategies.
- Economic Data: U.S. natural gas stocks fell by 52 billion cubic feet, exceeding market expectations of a 36 bcf draw, while initial jobless claims rose by 4,000 to 212,000, suggesting potential pressures in the labor market.
See More
Hormel Foods Corporation Q1 2026 Earnings Call Insights
- Sustained Sales Growth: Hormel Foods reported a 2% organic net sales growth for Q1 2026, marking the fifth consecutive quarter of growth, demonstrating the strength of its protein-centric portfolio, although the Retail segment experienced a decline, indicating overall business stability.
- Strategic Business Divestiture: The company has entered into a definitive agreement to sell its whole-bird turkey business to Life-Science Innovations, which is expected to reduce net sales by approximately $50 million in fiscal 2026, aimed at decreasing reliance on volatile commodity-driven businesses and sharpening focus on value-added protein products.
- Robust Financial Performance: Q1 net sales exceeded $3 billion with adjusted operating income of $247 million and an operating margin of 8.2%, despite facing higher input costs and logistics expenses, while cash flow from operations increased to $349 million, reflecting the company's financial health.
- Optimistic Outlook: The company reaffirmed its adjusted full-year fiscal 2026 guidance for organic net sales growth of 1% to 4% and adjusted diluted EPS in the range of $1.43 to $1.51, with management expressing confidence in growth prospects for the upcoming quarters despite challenges from logistics and commodity costs.
See More
Long-Term Investment Value of Coca-Cola, Costco, and Hormel Foods
- Coca-Cola's Stability: Operating in over 200 countries with a portfolio of more than 200 beverage brands, Coca-Cola reported a 5% organic revenue increase for fiscal year 2025 and expects a 4% to 5% growth in 2026, highlighting its strong potential as a long-term investment.
- Costco's Membership Model: Costco's impressive membership renewal rate and competitive pricing strategy led to an 8.1% net sales increase in fiscal year 2025, further improving to 8.7% in the first two quarters of 2026, showcasing its robust growth momentum in the retail market.
- Hormel Foods' Dividend King Status: As a Dividend King, Hormel Foods has raised its dividend for 60 consecutive years, and despite recent challenges, it reported a 2% net sales growth last quarter while reaffirming its 2026 organic sales growth guidance of 1% to 4%, demonstrating its stable business foundation.
- Attractiveness for Long-Term Investment: These three companies not only possess strong brand influence in their respective sectors but also exhibit solid financial performance and consistent dividend payments, making them suitable for long-term investors seeking stable returns over the coming decades.
See More
Investment Value of Coca-Cola, Costco, and Hormel
- Coca-Cola's Stability: Coca-Cola has consistently increased its dividends for six decades, currently boasting a yield of 2.67%, and its asset-light business model ensures high profitability, making it attractive for long-term investors.
- Costco's Growth Potential: Costco reported an 8.1% increase in net sales for fiscal year 2025, improving to 8.7% in the first two quarters of 2026; despite a low dividend yield of 0.52%, its membership renewal rates and international expansion strategies are set to drive future growth.
- Hormel's Investment Opportunity: As another Dividend King, Hormel has raised its dividends for 60 years, with a current yield of 5.0%; although its stock has dropped 15% over the past year, its latest earnings report shows net sales growth for five consecutive quarters, demonstrating strong business resilience.
- Long-term Investment Choices: These three companies, with their strong brand recognition and solid business fundamentals, represent ideal options for long-term investors, especially as the defensive characteristics of consumer staples become increasingly important amid economic uncertainties.
See More
Market Sentiment Shifts to Fear Zone
- Market Sentiment Decline: The CNN Money Fear & Greed Index fell from 45.8 to 44.4, indicating a shift to the fear zone, which may weaken investor confidence and negatively impact stock performance.
- Jobless Claims Rise: Initial jobless claims in the U.S. increased by 4,000 to 212,000, close to the market estimate of 215,000, reflecting potential softness in the labor market that could adversely affect consumer spending.
- Major Index Performance: The Dow Jones rose by about 17 points to 49,499.20, while the S&P 500 fell 0.54% to 6,908.86, and the Nasdaq Composite dipped 1.18% to 22,878.38, indicating overall market pressure.
- Sector Performance Divergence: While most sectors closed lower, with consumer discretionary, information technology, and communication services suffering the largest losses, industrials and financial stocks bucked the trend, suggesting some resilience within the market.
See More
Hormel (HRL) Q1 2026 Earnings Call Transcript
See More
U.S. Stocks Decline Midway, S&P 500 Falls Over 1%
- Market Performance: U.S. stocks traded lower midway through the session, with the S&P 500 falling over 1%, indicating a weakening market trend that could impact investor confidence.
- Company Earnings: Hormel Foods Corp (NYSE:HRL) reported mixed Q1 FY26 results, with adjusted EPS of 34 cents beating the 32 cents consensus, but sales of $3.03 billion missed the $3.07 billion estimate, reflecting sales challenges faced by the company.
- Sector Performance: Energy shares gained 1%, while information technology stocks fell by 2.6%, indicating varied market reactions across sectors that may influence investor asset allocation strategies.
- Economic Data: U.S. natural gas stocks fell by 52 billion cubic feet, exceeding market expectations of a 36 bcf draw, while initial jobless claims rose by 4,000 to 212,000, suggesting potential pressures in the labor market.
See More
Hormel Foods Corporation Q1 2026 Earnings Call Insights
- Sustained Sales Growth: Hormel Foods reported a 2% organic net sales growth for Q1 2026, marking the fifth consecutive quarter of growth, demonstrating the strength of its protein-centric portfolio, although the Retail segment experienced a decline, indicating overall business stability.
- Strategic Business Divestiture: The company has entered into a definitive agreement to sell its whole-bird turkey business to Life-Science Innovations, which is expected to reduce net sales by approximately $50 million in fiscal 2026, aimed at decreasing reliance on volatile commodity-driven businesses and sharpening focus on value-added protein products.
- Robust Financial Performance: Q1 net sales exceeded $3 billion with adjusted operating income of $247 million and an operating margin of 8.2%, despite facing higher input costs and logistics expenses, while cash flow from operations increased to $349 million, reflecting the company's financial health.
- Optimistic Outlook: The company reaffirmed its adjusted full-year fiscal 2026 guidance for organic net sales growth of 1% to 4% and adjusted diluted EPS in the range of $1.43 to $1.51, with management expressing confidence in growth prospects for the upcoming quarters despite challenges from logistics and commodity costs.
See More
