Volume growth is hard to come
by in the food sector today, and even a very well-run company like
Hormel Foods
(NYSE:HRL)
can't escape that forever. With health and economic factors
translating into less animal protein consumption, and grain costs
likely to work their way through the animal production cycle in 2013,
these aren't the easiest of times for Hormel. Although I think the
company's strong operating capabilities and focus on
packaged/value-added foods will give it an edge on the likes of Tyson
(NYSE:TSN)
and Smithfield
(NYSE:SFD),
I'd be careful chasing the stock so close to a 52-week high and a
double-digit EV/EBITDA
ratio.
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