Stephens Forecasts Strong Price Appreciation for Hormel Foods (NYSE:HRL) Stock

Key Points

• Stephens raised its price target on Hormel Foods from $22 to $25 while keeping an “equal weight” rating, implying about 5.6% upside from the current price.
• Hormel recently beat earnings expectations, reporting $0.40 EPS versus $0.35 expected and revenue of $2.97 billion versus $2.96 billion expected, with revenue up 2.6% year over year.
• Other analysts remain cautious overall: the stock’s consensus rating is “Hold” with an average price target of $25.83, reflecting mixed views despite recent operational progress and reaffirmed FY2026 guidance.

Hormel Foods (NYSE:HRL - Get Free Report) had its target price increased by stock analysts at Stephens from $22.00 to $25.00 in a report issued on Friday,Benzinga reports. The firm presently has an "equal weight" rating on the stock. Stephens' price objective indicates a potential upside of 5.60% from the stock's current price.

A number of other research firms have also weighed in on HRL. The Goldman Sachs Group set a $25.00 price objective on shares of Hormel Foods in a research note on Thursday, May 21st. JPMorgan Chase & Co. reiterated a "neutral" rating and issued a $23.00 price objective (down from $28.00) on shares of Hormel Foods in a research note on Thursday, April 9th. Finally, Weiss Ratings reiterated a "sell (d+)" rating on shares of Hormel Foods in a research note on Tuesday, April 21st. Two investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $25.83.

Hormel Foods Stock Performance

Hormel Foods stock traded up $0.09 during mid-day trading on Friday, reaching $23.68. The company's stock had a trading volume of 1,460,775 shares, compared to its average volume of 4,852,840. Hormel Foods has a 12-month low of $19.70 and a 12-month high of $31.86. The company has a market capitalization of $13.03 billion, a P/E ratio of 26.65, a PEG ratio of 2.88 and a beta of 0.33. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.37 and a current ratio of 2.66. The firm's fifty day moving average price is $21.40 and its two-hundred day moving average price is $22.97.

Hormel Foods (NYSE:HRL - Get Free Report) last released its quarterly earnings data on Thursday, May 28th. The company reported $0.40 earnings per share for the quarter, beating analysts' consensus estimates of $0.35 by $0.05. Hormel Foods had a net margin of 4.03% and a return on equity of 9.38%. The business had revenue of $2.97 billion during the quarter, compared to analyst estimates of $2.96 billion. During the same period in the previous year, the business earned $0.35 EPS. Hormel Foods's revenue was up 2.6% compared to the same quarter last year. Hormel Foods has set its FY 2026 guidance at 1.430-1.510 EPS. Sell-side analysts predict that Hormel Foods will post 1.41 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. GoalVest Advisory LLC bought a new stake in shares of Hormel Foods during the 4th quarter worth $25,000. MUFG Securities EMEA plc bought a new stake in shares of Hormel Foods during the 2nd quarter worth $26,000. Strive Financial Group LLC bought a new stake in shares of Hormel Foods during the 4th quarter worth $27,000. Motiv8 Investments LLC bought a new stake in shares of Hormel Foods during the 4th quarter worth $28,000. Finally, Federated Hermes Inc. bought a new stake in shares of Hormel Foods during the 3rd quarter worth $31,000. 40.99% of the stock is owned by institutional investors.

More Hormel Foods News

Here are the key news stories impacting Hormel Foods this week:

• Positive Sentiment: Hormel beat Wall Street expectations with adjusted EPS of $0.40 versus $0.35 expected, and revenue of $2.97 billion versus $2.96 billion expected, helping support the stock. Reuters article
• Positive Sentiment: The company said demand was strong for protein-rich foods, especially chicken and turkey, and management highlighted margin-driven momentum across retail, foodservice, and international segments. TipRanks article
• Positive Sentiment: Investors also welcomed signs that Hormel’s turnaround strategy is gaining traction, with organic sales growth and expanded adjusted margins supporting the case for a profit recovery. MSN article
• Positive Sentiment: Hormel reaffirmed fiscal 2026 guidance for adjusted EPS of $1.43 to $1.51 and revenue of $12.2 billion to $12.5 billion, which helped calm concerns about the pace of the recovery. Press release
• Neutral Sentiment: Management updated GAAP earnings guidance lower because of portfolio actions, including the sale of its whole-bird turkey business, but said the impact on adjusted EPS should be minimal.
• Negative Sentiment: Despite the beat, the company noted lower GAAP profit and profit guidance than some investors had hoped for, which could cap upside if margin recovery slows. WSJ article

Hormel Foods Company Profile

Hormel Foods Corporation is a global branded foods company primarily engaged in the production, marketing and distribution of value-added, high-quality meat and food products. The company's portfolio spans a range of categories including refrigerated and frozen meats, pantry staples, specialty foods and shelf-stable items. Through manufacturing facilities located across North America and international markets, Hormel Foods supplies retail grocers, foodservice operators, convenience stores and e-commerce platforms.

Among its best-known brands, Hormel Foods produces SPAM® canned meats, Jennie-O® turkey products, Skippy® peanut butter and Applegate® natural and organic meats.

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