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How Does Hormel Foods Compare to Peers on Key Moving Averages?

Sue Miller

Did Hormel Foods Deliver Strong Earnings in Fiscal 1Q16?

(Continued from Prior Part)

Moving averages

Hormel Foods (HRL) closed at $44.47 in yesterday’s trade. HRL is trading 21.3% above its 100-day moving average, 12.1% above its 50-day moving average, and 10.7% above its 20-day moving average. The stock has risen 6% in the last two months.

HRL’s peers in the industry include Tyson Foods (TSN), ConAgra Foods (CAG), and Sanderson Farms (SAFM). Tyson Foods closed at $62.41, which is 25.4%, 15.7%, and 12.4% above its 100-day, 50-day, and 20-day moving averages, respectively. The stock has risen 19% in the last two months due to the company’s revenue growth in fiscal 4Q15, updated guidance, and benefits from the Hillshire Brands acquisition.

ConAgra Foods closed yesterday’s trade at $41.70, which is 2.2% above its 100-day moving average, 2.7% above its 50-day moving average, and 3.5% above its 20-day moving average. CAG has fallen 3.1% in the last two months.
SAFM is trading 17.5%, 11.1%, and 8.3% above its 100-day, 50-day, and 20-day moving averages, respectively, and has risen 10.8% in the last two months. SAFM closed at $86.80 in yesterday’s trade.

The Guggenheim S&P 500 Equal Weight Consumer Staples ETF (RHS) invests 2.6% of its holdings in HRL, 2.6% of its holdings in TSN, and 2.7% of its holdings in CAG. RHS is trading 4.2%, 2.5%, and 3.2% above its 100-day, 20-day, and 50-day moving averages. It closed yesterday’s trade at $117.15.

Analysts’ estimates

Analysts’ estimates indicate rises of 11.1% for TSN and 8.6% for CAG for the next 12 months. Meanwhile, HRL and SAFM have already beaten estimates by 5.8% and 9.5%, respectively. As of yesterday, HRL, TSN, and SAFM have risen 12.5%, 17.0%, and 12.1%, respectively, on a YTD (year-to-date) basis. CAG has fallen 1.1% YTD, and RHS has risen 0.97% YTD. The iShares Morningstar Mid-Cap Value ETF (JKI) also invests 1.3% of its portfolio in CAG.

In the next part of this series, we’ll look at the rise in earnings in fiscal 1Q16 and what contributed to it.

Continue to Next Part

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