Hormel Foods

HRL

Market cap $14.1B

Hormel (HRL) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

The ProShares S&P 500 Dividend Aristocrat ETF (NOBL) is up 9.39% YTD in 2026, decisively outperforming SPY's 1.08%. Dividend Aristocrats are regaining momentum after a weak 2025, with 55 outpacing SPY and 39 posting double-digit gains this year already. Dividend growth is lagging, with 2026's average increase currently at 3.22%, below last year's trend and potentially signaling headwinds.

I recently completed a review of high dividend packaged food companies based on a matrix of factors including forward yield, payout ratio, value, growth, profitability, and financial strength. Hormel did not compare favorably to many of its peers, but stands out as a Dividend King trading at a discount. Many investors might rightly expect solid long-term performance from a Dividend King; Hormel's total return was a net loss almost 40% over the last three years.

Hormel Foods Corp (NYSE: HRL) stock fell on Thursday after the company reported mixed first-quarter FY26 results.

HRL tops first-quarter EPS estimates as sales edge up 1.3%, but margins tighten and volumes fall despite Foodservice and International strength.

Hormel Foods Corporation (HRL) Q1 2026 Earnings Call Transcript

Hormel Foods Corporation reported mixed Q1 results, showing relatively weak overall earnings but guiding a more stable FY2026 outlook. The retail segment showed a steep decline in sales volume, combining with limited pricing power. HRL's positioning in foodservice and international markets has remained better, proven by strong pricing power.

The headline numbers for Hormel (HRL) give insight into how the company performed in the quarter ended January 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

Hormel Foods (HRL) came out with quarterly earnings of $0.34 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.35 per share a year ago.

Skippy peanut butter maker Hormel Foods missed quarterly sales estimates on Thursday, reflecting U.S. consumers' shift towards cheaper alternatives amid economic uncertainty.