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Hormel Eyes Growth Despite Headwinds: Should You Buy?

Evaluating market performance charts

We have issued an updated research report on the premium meat products company Hormel Foods CorporationHRL on Dec 28, 2015. The company produces and sells a variety of meat and other food items on a global basis. However, despite holding a high brand value in the market, the firm is currently plagued by certain headwinds in its business.

Bullish Aspects

Hormel Foods' innovation-based growth strategy helps it enhance the demand in several of its product categories. Moreover, the company's margin is improving on the back of cost-saving programs and lower input prices. The company is also making concerted efforts to develop its business with the help of competent solutions and value-added marketing strategies. At the same time, recently inked acquisition deals are expected to bear fruits, going ahead.

Few Business Issues

We believe that this Zacks Rank #2 (Buy) stock would continue to improve its top- and bottom-line results in the quarters ahead. However, certain industry-specific negativities might dampen its commercial prospects. For instance, the highly contagious Avian influenza continues to create operational challenges for meat producers such as Hormel Foods. Moreover, the company's international business is exposed to risks arising from unfavorable currency fluctuations.

Other Stocks to Consider

Other well-ranked stocks in the industry include Tyson Foods, Inc. TSN , Blue Buffalo Pet Products, Inc. BUFF and The Chefs' Warehouse, Inc. CHEF . All three stocks carry the same Zacks Rank as Hormel Foods.

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

TYSON FOODS A (TSN): Free Stock Analysis Report

HORMEL FOODS CP (HRL): Free Stock Analysis Report

CHEFS WAREHOUSE (CHEF): Free Stock Analysis Report

BLUE BUFFALO (BUFF): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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