There's a lot more to Hormel (NYSE:HRL) than Spam, but it takes a long time for common perceptions to change. Hormel is really not a commodity meat company like Tyson (NYSE:TSN) or Smithfield (NYSE:SFD); it has returns on capital much closer to branded packaged goods companies like Kellogg (NYSE:K) or Heinz (NYSE:HNZ). Hormel's processed foods may not be the epitome of healthy or organic eating, but if the company continues to develop popular brands and follow-on products, this could be a much more dynamic company than investors think.
Third Quarter Results on Target
Hormel did more or less as analysts expected it to do for this quarter. Sales rose 10% on flat volume, basically matching the average analyst guess. Sales growth matched that company-wide average in the refrigerated segment, while the grocery business lagged noticeably (up 4%) and Jennie-O and specialty slightly surpassed it.
Read more at the link below:
http://stocks.investopedia.com/stock-analysis/2011/Hormel-May-Be-More-Organic-Than-You-Think-HRL-TSN-SFD-K-GIS-KFT-SLE-CAG0825.aspx
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