Hormel Foods: Lackluster Growth Limits Upside

Seeking Profits 5.69K Followers Follow Summary Hormel Foods (HRL) remains a 'hold' as margin recovery nears completion and volume growth prospects remain muted. HRL's Q3 saw adjusted EPS beat by $0.02, but organic sales declined 2% amid persistent consumer caution and food inflation. Free cash flow remains robust ($700M+ expected FY), supporting a secure 5% dividend yield and a strong balance sheet. With shares trading at ~15x earnings and limited near-term catalysts, I see HRL as a 'collect the dividend' stock at fair value. jfmdesign/iStock Unreleased via Getty Images Shares of Hormel Foods ( HRL ) have been a poor performer over the past year, losing over 15% of their value. On Thursday, the company reported mixed quarterly results, making clear that the headwinds which have plagued the business This article was written by Seeking Profits 5.69K Followers Follow Over fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know! Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.