Austin, Minnesota-based Hormel Foods Corporation (HRL) develops, processes, and distributes various meat, nuts, and other food products to foodservice, convenience store, and commercial customers in the United States and internationally. The company, valued at $10.9 billion, operates through three segments: Retail, Foodservice, and International.
HRL shares have lagged behind the broader market over the past year, declining 35.1% compared to the S&P 500 Index ($SPX) 25.2% surge. Moreover, in 2026, the stock has fallen nearly 16.3%, underperforming the SPX’s 9.6% rise.
Focusing on its industry benchmark, the State Street Consumer Staples Select Sector SPDR ETF (XLP) has risen 3% over the past year, outperforming the stock. In 2026, as well, XLP surged 8.8% and has outperformed the stock.
On Feb. 27, HRL stock rose 3.1% following the release of its Q1 2026 earnings. The company’s revenue amounted to $3 billion and surpassed the Street’s estimates. Moreover, its adjusted EPS amounted to $0.34, also coming in on top of Wall Street’s forecasts. Hormel expects full-year earnings in the range of $1.43 to $1.51 per share.
For the current year, which ends in October, analysts expect HRL’s EPS to rise 3.7% to $1.42 on a diluted basis. The company met or surpassed the consensus estimate in three of the last four quarters, missing the mark once.
Among the 10 analysts covering HRL stock, the consensus is a “Hold.” That’s based on two “Strong Buy” ratings and eight “Holds.”
This configuration has remained mostly stable in recent months.
On Apr. 9, JP Morgan analyst Thomas Palmer downgraded HRL from an “Overweight” to “Neutral” and lowered its price target from $28 to $23.
HRL’s mean price target of $26.57 indicates a premium of 31.8% from the current market prices. Its Street-high target of $30 suggests a robust 48.8% upside potential from current price levels.
