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Buy $HRL?
Recently, Hormel Foods released their earnings report. The company achieved record sales and double digit earnings growth. Even if the volume of products sold has declined, their revenues have soared. Inflation has given Hormel Foods immense pricing power.
Should dividend investors buy Hormel on the dip?
77%Yes
22%No
9 VotesPoll ended on: 06/09/22
$HRL isn't a company I've followed with any regularity but I was struck by this passage from their earnings presser:
“Double-digit organic sales growth was driven by our foodservice businesses, retail brands such as WHOLLY, SKIPPY, Hormel Square Table, SPAM, Hormel Gatherings, Dinty Moore and Jennie-O, and strong contributions from our food-forward brands, including Columbus and Applegate. Results for our Planters snack nuts business improved throughout the quarter, and we are realizing the positive impact of the scale this business brings to our company, especially in the important and fast-growing convenience store channel. Our brands have responded well to pricing actions, and we are actively managing pricing and promotional levers to ensure the long-term health of our brands and the categories in which they compete.”
It's just interesting to see Planters nuts and SPAM driving double-digit growth at $HRL while companies like $VITL, $TTCF, $SFM, and $HAIN are leaning on the tailwind blow of a supposed trend toward healthy eating and wellness. Let's look at a few charts...
And now for Hormel...
Is it misleading to zoom out so far on that last chart? OK. Here's since 2018--more to scale with the others:
