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The Zacks Consumer Staples Sector has held up relatively well compared to the general market in 2022, down 5%. Companies within the sector generate revenue in the face of both good and bad economic times, helping explain why the sector has performed at a much higher level.
Image Source: Zacks Investment Research
Hormel Foods (HRL - Free Report) , a company in the sector, is scheduled to unveil Q3 earnings on Thursday, September 1st, before 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 B. How does the food titan stack up heading into the release? Let’s take a closer look.
Share Performance & Valuation
Hormel Foods shares have been notably strong in 2022, tacking on 5% in value and absolutely crushing the S&P 500’s performance.
Image Source: Zacks Investment Research
Over the last month, HRL shares have continued on their market-beating trajectory, increasing by 2.3% in value vs. the S&P 500’s -3% decline.
Image Source: Zacks Investment Research
The favorable price action of Hormel shares tells us that buyers have defended the stock all year long.
Still, HRL shares trade at steep valuation levels – the company’s 26.9X forward earnings multiple is above its five-year median of 24.6X and represents a 34% premium relative to its Zacks Sector.
Hormel carries a Style Score of a C for Value.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have been bullish on their earnings outlook over the last several months, with two upwards estimate revisions hitting the tape. The Zacks Consensus EPS Estimate of $0.41 suggests year-over-year earnings growth of 5.1%.
Image Source: Zacks Investment Research
In addition, the company’s top-line appears to be in solid shape as well – the Zacks Consensus Sales Estimate of $3.1 billion pencils in year-over-year revenue growth of a notable 7.2%.
Quarterly Performance & Market Reactions
Hormel has had recent success with its bottom-line results, exceeding the Zacks Consensus EPS Estimate in each of its previous four quarters. Just in its latest print, HRL penciled in a 4.4% bottom-line beat.
Quarterly revenue has also consistently been reported above expectations, with Hormel recording nine top-line beats over its last ten quarters. Below is a chart illustrating the company’s income on a quarterly basis.
Image Source: Zacks Investment Research
Further, the market has reacted well in response to the company’s recent quarterly reports, with shares moving upwards following two of the previous three releases.
Putting Everything Together
Hormel shares have posted market-beating returns over the last month and YTD, telling us that buyers have remained in control.
HRL shares could be considered overvalued, with its forward P/E ratio well above its five-year median and Zacks Consumer Discretionary Sector.
Analysts have had bullish earnings estimate revisions over the last several months, and projections allude to Y/Y increases in revenue and earnings.
Further, the company has consistently exceeded quarterly estimates, and the market has had favorable reactions following the majority of its previous three prints.
Heading into the release, Hormel Foods (HRL - Free Report) carries a Zacks Rank #3 (Hold) with an Earnings ESP Score of 1.5%.
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Hormel Foods Q3 Preview: Can Shares Stay Hot?
The Zacks Consumer Staples Sector has held up relatively well compared to the general market in 2022, down 5%. Companies within the sector generate revenue in the face of both good and bad economic times, helping explain why the sector has performed at a much higher level.
Image Source: Zacks Investment Research
Hormel Foods (HRL - Free Report) , a company in the sector, is scheduled to unveil Q3 earnings on Thursday, September 1st, before 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 B. How does the food titan stack up heading into the release? Let’s take a closer look.
Share Performance & Valuation
Hormel Foods shares have been notably strong in 2022, tacking on 5% in value and absolutely crushing the S&P 500’s performance.
Image Source: Zacks Investment Research
Over the last month, HRL shares have continued on their market-beating trajectory, increasing by 2.3% in value vs. the S&P 500’s -3% decline.
Image Source: Zacks Investment Research
The favorable price action of Hormel shares tells us that buyers have defended the stock all year long.
Still, HRL shares trade at steep valuation levels – the company’s 26.9X forward earnings multiple is above its five-year median of 24.6X and represents a 34% premium relative to its Zacks Sector.
Hormel carries a Style Score of a C for Value.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have been bullish on their earnings outlook over the last several months, with two upwards estimate revisions hitting the tape. The Zacks Consensus EPS Estimate of $0.41 suggests year-over-year earnings growth of 5.1%.
Image Source: Zacks Investment Research
In addition, the company’s top-line appears to be in solid shape as well – the Zacks Consensus Sales Estimate of $3.1 billion pencils in year-over-year revenue growth of a notable 7.2%.
Quarterly Performance & Market Reactions
Hormel has had recent success with its bottom-line results, exceeding the Zacks Consensus EPS Estimate in each of its previous four quarters. Just in its latest print, HRL penciled in a 4.4% bottom-line beat.
Quarterly revenue has also consistently been reported above expectations, with Hormel recording nine top-line beats over its last ten quarters. Below is a chart illustrating the company’s income on a quarterly basis.
Image Source: Zacks Investment Research
Further, the market has reacted well in response to the company’s recent quarterly reports, with shares moving upwards following two of the previous three releases.
Putting Everything Together
Hormel shares have posted market-beating returns over the last month and YTD, telling us that buyers have remained in control.
HRL shares could be considered overvalued, with its forward P/E ratio well above its five-year median and Zacks Consumer Discretionary Sector.
Analysts have had bullish earnings estimate revisions over the last several months, and projections allude to Y/Y increases in revenue and earnings.
Further, the company has consistently exceeded quarterly estimates, and the market has had favorable reactions following the majority of its previous three prints.
Heading into the release, Hormel Foods (HRL - Free Report) carries a Zacks Rank #3 (Hold) with an Earnings ESP Score of 1.5%.