A packaged-foods company with declining revenue, a quality profile below the minimum investment threshold, and the stock trading in overbought territory (RSI 86) above its near-term technical ceiling — with an unfavorable risk/reward — presents a setup that argues for exiting or avoiding the position, despite a recent three-quarter earnings beat streak.
Thesis pillars
- Overbought Price Above Resistance→Stable
- Revenue Contraction Headwind→Stable
- Quality Below Investment Threshold→Stable
- +1 more pillar — see the Why tab for full reasoning
Hormel Foods Corporation (HRL) Stock Analysis
Consumer Defensive · Packaged Foods
Sell if holding. Analyst target reached at $25.97 — A.R:R is negative (-1.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Weak overall score: 4.6/10.
Hormel Foods processes and markets branded food products—including Planters, SPAM, Jennie-O, and Skippy—through Retail, Foodservice, and International segments, generating more than $12 billion in annual revenue. Walmart represented 15.6% of consolidated gross sales in fiscal... Read more
Sell if holding. Analyst target reached at $25.97 — A.R:R is negative (-1.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Weak overall score: 4.6/10. Chart setup: No clear chart pattern; technical signals are mixed. Score 4.6/10, moderate confidence.
Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 31d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
About Hormel Foods Corporation
About Hormel Foods Corporation
Hormel Foods generated more than $12 billion in annual revenue in fiscal 2025; Walmart Inc. and its subsidiaries represented 15.6% of consolidated gross sales, and the top five customers collectively 38%. Three segments—Retail, Foodservice, and International—distribute Planters, SPAM, Jennie-O, and Skippy to grocery, club, foodservice, and international channels. Approximately 20,000 employees were on staff at October 26, 2025, with over 90% in the United States.
Hormel earns branded revenue primarily from pork and turkey products, with animal proteins remaining the core input. The company takes a balanced approach to pork sourcing—combining internal facility purchases at its Austin, Minnesota processing plant, long-term supply agreements, and spot market contracts—while raising the majority of its turkeys internally. Turkey production cost is subject to feed grain volatility; Highly Pathogenic Avian Influenza was detected in the turkey supply chain in both fiscal 2024 and fiscal 2025. Commodity hedges including futures, swaps, and options partially mitigate short-term price swings but cannot fully offset sustained market moves. The Retail and Foodservice segments face competition from other pork and turkey processors, national brands, private-label producers, and plant-based protein alternatives. Advertising and trade promotion support shelf placement across retail, club, drug, and e-commerce channels.
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Walmart's 15.6% share of consolidated gross sales in fiscal 2025—spanning both the Retail and International segments—makes it the company's most concentrated single commercial relationship. The top-five customer group at approximately 38% of gross sales means that a pricing or assortment dispute with any top customer could adversely affect that segment's results, per the 10-K. Separately, the fiscal 2025 impairment of the Planters trade name by $59.1 million and the Chi-Chi's trade name by $2.9 million signal brand-equity erosion in the snacks category, adding pricing-power risk to the existing customer concentration.
See also: Consumer Defensive · Packaged Foods
From Hormel Foods Corporation's most recent 10-K filing, extracted June 10, 2026.
Recent developments
updated 2026-07-27Recent Developments — Hormel Foods Corporation
Latest news
- NEWS BNP Paribas Maintains Neutral on Hormel Foods, Raises Price Target to $27 — benzinga Jul 14, 2026 positive
- NEWS 'White House Pressures Top U.S. Grocers on Beef Prices' - WSJ — benzinga Jul 8, 2026 neutral
- NEWS B of A Securities Maintains Neutral on Hormel Foods, Raises Price Target to $27 — benzinga Jun 30, 2026 positive
- NEWS Hormel Foods Agrees To Sell CERATTI Business In Brazil To Zanchetta Alimentos; Terms Undisclosed — benzinga Jun 29, 2026 neutral
- NEWS B of A Securities Maintains Neutral on Hormel Foods, Raises Price Target to $25 — benzinga May 29, 2026 neutral
Generated 2026-07-27T15:42:49Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWCustomerWalmart16%10-K Item 1: 'Sales to the Company's largest customer, Walmart ... accounted for 15.6 percent of consolidated gross sales'
- MEDIUMCustomertop five customers38%10-K Item 1: 'The Company's top five customers collectively represented approximately 38 percent of consolidated gross sales less returns and allowances during fiscal 2025'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Revenue shrinking — -2.9% YoY. Growth thesis broken unless recovery story develops.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $25.97 — A.R:R is negative (-1.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Weak overall score: 4.6/10. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $24.81. Score 4.6/10, moderate confidence.
Take-profit target: $25.74 (-9.8% upside). Prior stop was $24.81. Stop-loss: $24.81.
Analyst target reached - limited upside remaining; Weak overall score: 4.6/10; Weak growth.
Hormel Foods Corporation trades at a P/E of 29.8 (forward 16.2). TrendMatrix value score: 5.8/10. Verdict: Sell.
15 analysts cover HRL with a consensus score of 3.5/5. Average price target: $27.
What does Hormel Foods Corporation do?Hormel Foods processes and markets branded food products—including Planters, SPAM, Jennie-O, and Skippy—through Retail,...
Hormel Foods processes and markets branded food products—including Planters, SPAM, Jennie-O, and Skippy—through Retail, Foodservice, and International segments, generating more than $12 billion in annual revenue. Walmart represented 15.6% of consolidated gross sales in fiscal 2025, with the top five customers accounting for approximately 38%; the company employs approximately 20,000 people, with over 90% in the United States.