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.
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. For more information please view the Barchart Disclosure Policy here.
