Opinions
John Kim
Hormel Foods Corp
HRL-N
BUY
Jun 21, 2019
He ate Spam as a kid, a cheap meat. HRL has transformed from producing Spam to delivering packaged goods, so that has added value. Millennials are cooking less, so there's growing demand for ready-made meals. This means that HRL should do well.
$41.410
Stock price when the opinion was issued
food services
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
COMMENT
It's always been a good company due to their ability to allocate capital appropriately. They were struggling before due to pork prices for SPAM. They're also in the spreads business like Skippy's. 5 year dividend growth is 16%. If they continue to keep margins up, it is a good company.
food services
DON'T BUY
Is up 13% for the past year. They make Spam, Planter's Peanuts and other packaged food, an industry that has held up better than the market. Hormel just released its quarter and it was mixed: 51 cents EPS vs. expected 50 cents, lower than expected sales which worries him, a weak 2023 forecast because of a volatile, high-cost environment.
food services