Latest news with #HRL
Yahoo
3 hours ago
- Business
- Yahoo
Hormel Foods Stock: Is HRL Underperforming the Consumer Defensive Sector?
With a market cap of $16.6 billion, Hormel Foods Corporation (HRL) is a leading global manufacturer and marketer of high-quality meat and food products. The company operates through Retail, Foodservice, and International segments, offering a diverse portfolio of perishable and shelf-stable items under more than 30 well-known brands, including SPAM™, SKIPPY™, Planters™, and Jennie-O™. Companies valued at $10 billion or more are generally classified as 'large-cap' stocks, and Hormel Foods fits this criterion perfectly, exceeding the mark. Hormel distributes its products to a broad range of customers worldwide, including foodservice providers, convenience stores, and commercial retailers. 3 ETFs with Dividend Yields of 12% or Higher for Your Income Portfolio Dear Tesla Stock Fans, Mark Your Calendars for June 30 Nvidia Is Quickly Approaching a New Record High. Is It Too Late to Buy NVDA Stock? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Shares of the Austin, Minnesota-based company pulled back 11.1% from its 52-week high of $33.80. Shares of Hormel Foods have risen 1.3% over the past three months, slightly outperforming the Consumer Staples Select Sector SPDR Fund's (XLP) marginal gain over the same time frame. Longer term, HRL stock is down 4.2% on a YTD basis, underperforming XLP's 2.3% rise. Moreover, shares of the Skippy peanut butter maker have dipped 1.4% over the past 52 weeks, compared to XLP's 3.4% return over the same time frame. Despite a few fluctuations, the stock has been trading mostly below its 200-day moving average since last year. Shares of Hormel Foods rose 1.1% on May 29 after the company reported Q2 2025 adjusted EPS of $0.35 and revenue of $2.9 billion, meeting Wall Street expectations. Despite a 7% decline in sales volumes in both the retail and foodservice segments due to supply chain challenges and lower raw material shipments, investors were encouraged by the reaffirmed annual organic net sales growth outlook of 2% to 3%. The company also narrowed its full-year adjusted EPS forecast to $1.58 - $1.68, keeping the lower bound intact. In comparison, rival The Kraft Heinz Company (KHC) has lagged behind Hormel Foods stock. Shares of Kraft Heinz have decreased 21.1% over the past 52 weeks and 16.2% on a YTD basis. Despite the stock's underperformance relative to the sector over the past year, analysts are moderately optimistic about its prospects. The stock has a consensus rating of 'Moderate Buy' from the nine analysts covering the stock, and as of writing, HRL is trading below the mean price target of $32.71. On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Is McCormick Stock Underperforming the Dow?
Hunt Valley, Maryland-based McCormick & Company, Incorporated (MKC) is a global leader in flavor, producing and distributing spices, seasonings, and condiments. With a market cap of $19.6 billion, it operates in over 150 countries through its Consumer and Flavor Solutions segments. Categorized as a "large-cap stock," McCormick's valuation highlights its dominance in the flavor industry. Its innovative products and global reach underscore its position as a leader in the food sector. Is Palantir Stock Poised to Surge Amidst the Israel-Iran Conflict? 'It Has No Utility': Warren Buffett Doesn't Care How High Gold Goes, He Isn't a Buyer CoreWeave Stock Is Too 'Expensive' According to Analysts. Should You Sell CRWV Now? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. McCormick touched its 52-week high of $86.24 on Mar. 10 and is currently trading 15.1% below that peak. Meanwhile, MKC stock has dropped nearly 10% over the past three months, notably underperforming the Dow Jones Industrial Average's ($DOWI) 1.4% uptick during the same time frame. McCormick's performance has remained lackluster over the longer term as well. MKC stock has dropped 4% on a YTD basis and gained 6.7% over the past year, underperforming Dow's marginal 88 bps dip in 2025 and 8.6% gains over the past 52 weeks. To confirm the downturn, MKC stock has traded consistently below its 200-day moving average and mostly below its 50-day moving average since early April. McCormick's stock prices observed a marginal dip after the release of its Q1 results on Mar. 25. The company experienced a 2% growth in volumes, but it was mostly offset by currency headwinds, leading to its net sales growing by a modest 17 bps year-over-year to $1.6 billion, which missed the consensus estimates by 38 bps. Meanwhile, its adjusted EPS for the quarter decreased 4.8% year-over-year to $0.60, falling short of Street expectations by 6.3%. On a positive note, for the full fiscal 2025, the company expects to observe a low-single-digit growth in volumes and a gradual improvement in demand from China. While McCormick has marginally underperformed its peer Hormel Foods Corporation's (HRL) 3.9% drop on a YTD basis, it has significantly outpaced HRL's marginal 69 bps dip over the past 52 weeks. Among the 14 analysts covering the MKC stock, the consensus rating is a 'Moderate Buy.' Its mean price target of $84.87 suggests a 15.9% upside potential from current price levels. On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
10-06-2025
- Business
- Yahoo
HRL Laboratories Unveils SPARES: A Revolutionary Approach to Structural Reliability Assessment
MALIBU, Calif., June 10, 2025--(BUSINESS WIRE)--HRL Laboratories is introducing SPARES (Surrogate‐accelerated, Physics‐guided Assessment for the Reliability of Structures), a breakthrough project that leverages the layer-by-layer nature of additive manufacturing to deliver faster, smarter and more efficient structural reliability analysis for metal parts, providing fatigue performance data without destructive testing. About SPARES SPARES combines physics-based modeling with machine learning-driven surrogate models to dramatically reduce the time and computational effort required to evaluate structural integrity, without sacrificing accuracy. SPARES is a DARPA-funded effort under the SURGE (Structures Uniquely Resolved to Guarantee Endurance) program, recognizing HRL's leadership in advancing structural reliability assessment. SPARES is developed in collaboration with: Boeing, Purdue University and the University of Utah. SPARES leverages Fringe Inspection™, a real-time, layer-by-layer topology inspection product from Phase3D, that provides objective data of the additive manufacturing process. What you need to know Reliability assessments are critical for industries like aerospace, automotive and civil engineering, where materials and structures must withstand extreme conditions over time. Traditional methods rely on complex simulations or large-scale physical testing, both of which can be slow and expensive. SPARES tackles this challenge by: Collecting sensor data and in-situ monitoring during the additive manufacturing process. Using surrogate models, which are streamlined, AI-assisted versions of full-scale simulations, to rapidly predict how structures will perform under stress. These models are informed by real physics to ensure that results remain reliable even as computational effort is reduced. "SPARES is about efficiency without compromise," said Eric Clough, Principal Investigator at HRL Laboratories. "By embedding advanced physics principles into AI-driven models, we're able to speed up the reliability assessment process while maintaining the accuracy engineers need to make critical decisions." Dig deeper This hybrid approach makes it possible to assess failure risks, predict material performance and optimize designs in a fraction of the time required by conventional methods. Whether evaluating aircraft components, vehicle frames or infrastructure items, SPARES provides engineers with fast, physics and data-driven insights to enhance safety and durability. HRL Laboratories, alongside its esteemed partners, is committed to developing innovative solutions that address real-world engineering challenges. SPARES is a testament to that mission, pushing the boundaries of structural reliability research and paving the way for smarter, more resilient designs. HRL Laboratories, LLC, California ( pioneers the next frontiers of physical and information science. Delivering transformative technologies in automotive, aerospace and defense, HRL advances the critical missions of its customers. As a private company owned jointly by Boeing and GM, HRL is a source of innovations that advance the state of the art in profound and far-reaching ways. View source version on Contacts media@ 310-317-5000 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-06-2025
- Business
- Yahoo
1 Consumer Stock to Own for Decades and 2 to Keep Off Your Radar
Consumer staples stocks are solid insurance policies in frothy markets ripe for corrections. Surprisingly, the sector hasn't played its shielding role over the past six months as it tumbled 14.1%. This drop was much worse than the S&P 500's 1.8% decline. The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. On that note, here is one consumer stock boasting a durable advantage and two that may face trouble. Market Cap: $16.88 billion Best known for its SPAM brand, Hormel (NYSE:HRL) is a packaged foods company with products that span meat, poultry, shelf-stable foods, and spreads. Why Do We Think Twice About HRL? Shrinking unit sales over the past two years show it's struggled to move its products and had to rely on price increases Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 16.7% that must be offset through higher volumes Sales were less profitable over the last three years as its earnings per share fell by 6.5% annually, worse than its revenue declines Hormel Foods's stock price of $30.70 implies a valuation ratio of 17.7x forward P/E. Check out our free in-depth research report to learn more about why HRL doesn't pass our bar. Market Cap: $1.59 billion Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE:FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables. Why Do We Steer Clear of FDP? Sales were flat over the last three years, indicating it's failed to expand its business Gross margin of 8.2% is an output of its commoditized products Low returns on capital reflect management's struggle to allocate funds effectively Fresh Del Monte Produce is trading at $33.13 per share, or 8.2x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than FDP. Market Cap: $7.89 billion Spun out of Post Holdings in 2019, Bellring Brands (NYSE:BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands. Why Are We Bullish on BRBR? Stellar 20.8% growth in unit sales over the past two years demonstrates the high demand for its products Earnings growth has trumped its peers over the last three years as its EPS has compounded at 28% annually ROIC punches in at 48.9%, illustrating management's expertise in identifying profitable investments At $62.15 per share, BellRing Brands trades at 26.1x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
Yahoo
30-05-2025
- Business
- Yahoo
Hormel Foods Corp (HRL) Q2 2025 Earnings Call Highlights: Solid Organic Growth Amidst Commodity ...
Net Sales: $2.9 billion, a 1% organic increase over last year. Gross Profit Margin: 16.7%, impacted by higher commodity input costs. SG&A Expenses: Decreased by 50 basis points. Diluted Earnings Per Share: $0.33; Adjusted diluted earnings per share: $0.35. Cash Flow from Operations: $56 million. Capital Expenditures: $75 million, with a full-year expectation of $275 million to $300 million. Debt: $2.9 billion, at the low end of the net debt-to-EBITDA target. Dividend: 387th consecutive quarterly dividend paid. Full-Year Net Sales Growth Outlook: 2% to 3% increase expected. Full-Year Adjusted EPS Outlook: $1.58 to $1.68. Warning! GuruFocus has detected 6 Warning Signs with HRL. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Hormel Foods Corp (NYSE:HRL) achieved solid organic top line growth and delivered second quarter results in line with expectations. The Applegate brand experienced incredible sales growth, outpacing the total edible category and expanding its reach with new product lines. Jennie-O lean ground turkey continues to perform well, aligning with consumer preferences for lean, high-protein foods. The Mexican foods portfolio saw success with Herdez Salsa and refrigerated guacamole, experiencing double-digit consumption growth. The International segment delivered strong top line growth, driven by double-digit volume and net sales growth in exports and robust growth in China. Higher commodity input costs impacted gross profit margins, which were at 16.7% for the quarter. Interest and investment income decreased due to lower cash balances and performance from the rabbi trust. The macro environment remains dynamic, with potential impacts from tariffs and lower investment income anticipated in the second half. The company faced challenges with inventory management, necessitating strategic builds for summer demand. Foodservice margins have been stagnant, requiring continued efforts to outperform the broader market. Q: Can you elaborate on the revised operating income outlook for the year and how you plan to achieve it? A: James Snee, CEO, explained that Hormel Foods is well-positioned for a strong second half, driven by the recovery of the Planters brand, positive momentum in the turkey portfolio, and strong performance in value-added businesses. The Transform and Modernize (T&M) initiative is on track, contributing to the expected results. Q: What is the expected cadence for turkey performance in the second half of the year? A: Jacinth Smiley, CFO, noted that strong top-line growth is expected in Q3, with low double-digit EPS growth. James Snee added that the turkey supply is tightening, but Hormel is well-positioned with a focus on value-added turkey products, expecting most upside during the fresh season closer to Thanksgiving. Q: Can you provide more details on the expected margin improvements in the second half? A: Jacinth Smiley stated that margin expansion is expected, driven by turkey, Planters, and value-added businesses, along with benefits from the T&M initiative. Sequential margin improvement was already seen in Q2, and this trend is expected to continue. Q: How is Hormel Foods planning to achieve mid-single-digit growth in Foodservice despite industry challenges? A: James Snee highlighted Hormel's historical outperformance in the Foodservice sector, supported by a strong pipeline of innovation, favorable year-over-year comps, and a solution-based portfolio that meets diverse channel needs. Q: What are the key initiatives under the Transform and Modernize (T&M) initiative, and how are they progressing? A: Jacinth Smiley mentioned that 66 projects were executed this quarter under T&M, including opening a new distribution center in Memphis and closing a dry sausage facility in California. The initiative focuses on improving supply chain efficiency and planning, with a robust pipeline of projects to meet savings targets. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
