The Zacks Consumer Staples sector has been stronger than most in 2022, down 3% and outperforming the S&P 500 by a notable margin.
Companies in the sector have the advantageous ability to generate revenue in the face of many economic situations, helping explain why it’s been a brighter spot in a dim market.
A titan in the realm, Hormel Foods (HRL - Free Report) , is on deck to unveil Q4 earnings on November 30th, before the market open.
Hormel Foods is a leading manufacturer and marketer of various meat and food products in the U.S. and international markets.
Currently, the company is a Zacks Rank #3 (Hold) with an overall VGM Score of a C. How does the food titan stack up heading into the release? Let’s take a closer look.
Share Performance & Valuation
HRL shares have displayed immense relative strength in 2022, up roughly 3% vs. the S&P 500’s 16% decline.
Over the last month, HRL shares have continued on their market-beating trajectory, tacking on nearly 9% in value vs. the S&P 500’s 5% gain.
Currently, Hormel shares trade at a 24.4X forward earnings multiple, above the Zacks Consumer Staples sector average and marginally below its 24.8X five-year median.
Hormel sports a Value Style Score of a B.
Quarterly Estimates
Analysts have had mixed reactions regarding their earnings outlook over the last several months, with one upward and one downward earnings estimate revision. The Zacks Consensus EPS Estimate of $0.50 suggests a Y/Y decline in earnings of a modest 2%.
The company’s top-line looks to contract as well; the Zacks Consensus Sales Estimate of $3.3 billion indicates a decline of roughly 4.6% from year-ago sales of $3.5 billion.
Quarterly Performance
Hormel has primarily posted better-than-expected earnings results, exceeding the Zacks Consensus EPS Estimate in four of its last five quarters. Still, the one miss came in its latest earnings release, when HRL missed on the bottom-line by 2.4%.
Sales results paint a similar story; HRL has exceeded revenue expectations in four of its last five prints, with the one miss coming in its latest release. Below is a chart illustrating the company’s revenue on a quarterly basis.
Putting Everything Together
HRL shares have displayed a high level of relative strength in 2022, outperforming the general market across several timeframes.
Shares currently trade just below the five-year median forward earnings multiple but above the Zacks Consumer Staples sector average.
Analysts have been mixed in their earnings outlooks, with estimates suggesting modest Y/Y decreases in earnings and revenue.
The company has primarily exceeded quarterly estimates but fell short of earnings and revenue expectations in its latest release.
Heading into the print, Hormel Foods (HRL - Free Report) carries a Zacks Rank #3 (Hold) with an Earnings ESP Score of 4.4%.
Zacks Names #1 Semiconductor Stock
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With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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The Zacks Consumer Staples sector has been stronger than most in 2022, down 3% and outperforming the S&P 500 by a notable margin.
Companies in the sector have the advantageous ability to generate revenue in the face of many economic situations, helping explain why it’s been a brighter spot in a dim market.
A titan in the realm, Hormel Foods (HRL - Free Report) , is on deck to unveil Q4 earnings on November 30th, before the market open.
Hormel Foods is a leading manufacturer and marketer of various meat and food products in the U.S. and international markets.
Currently, the company is a Zacks Rank #3 (Hold) with an overall VGM Score of a C. How does the food titan stack up heading into the release? Let’s take a closer look.
Share Performance & Valuation
HRL shares have displayed immense relative strength in 2022, up roughly 3% vs. the S&P 500’s 16% decline.
Over the last month, HRL shares have continued on their market-beating trajectory, tacking on nearly 9% in value vs. the S&P 500’s 5% gain.
Currently, Hormel shares trade at a 24.4X forward earnings multiple, above the Zacks Consumer Staples sector average and marginally below its 24.8X five-year median.
Hormel sports a Value Style Score of a B.
Quarterly Estimates
Analysts have had mixed reactions regarding their earnings outlook over the last several months, with one upward and one downward earnings estimate revision. The Zacks Consensus EPS Estimate of $0.50 suggests a Y/Y decline in earnings of a modest 2%.
The company’s top-line looks to contract as well; the Zacks Consensus Sales Estimate of $3.3 billion indicates a decline of roughly 4.6% from year-ago sales of $3.5 billion.
Quarterly Performance
Hormel has primarily posted better-than-expected earnings results, exceeding the Zacks Consensus EPS Estimate in four of its last five quarters. Still, the one miss came in its latest earnings release, when HRL missed on the bottom-line by 2.4%.
Sales results paint a similar story; HRL has exceeded revenue expectations in four of its last five prints, with the one miss coming in its latest release. Below is a chart illustrating the company’s revenue on a quarterly basis.
Putting Everything Together
HRL shares have displayed a high level of relative strength in 2022, outperforming the general market across several timeframes.
Shares currently trade just below the five-year median forward earnings multiple but above the Zacks Consumer Staples sector average.
Analysts have been mixed in their earnings outlooks, with estimates suggesting modest Y/Y decreases in earnings and revenue.
The company has primarily exceeded quarterly estimates but fell short of earnings and revenue expectations in its latest release.
Heading into the print, Hormel Foods (HRL - Free Report) carries a Zacks Rank #3 (Hold) with an Earnings ESP Score of 4.4%.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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