U.S. markets closed
  • S&P 500

    4,188.43
    -44.17 (-1.04%)
     
  • Dow 30

    34,742.82
    -34.94 (-0.10%)
     
  • Nasdaq

    13,401.86
    -350.38 (-2.55%)
     
  • Russell 2000

    2,212.70
    -58.93 (-2.59%)
     
  • Crude Oil

    64.90
    -0.02 (-0.03%)
     
  • Gold

    1,837.00
    -0.60 (-0.03%)
     
  • Silver

    27.41
    -0.08 (-0.30%)
     
  • EUR/USD

    1.2143
    +0.0009 (+0.07%)
     
  • 10-Yr Bond

    1.6020
    +0.0250 (+1.59%)
     
  • GBP/USD

    1.4128
    +0.0007 (+0.05%)
     
  • USD/JPY

    108.8120
    -0.0290 (-0.03%)
     
  • BTC-USD

    55,695.15
    -2,754.07 (-4.71%)
     
  • CMC Crypto 200

    1,484.90
    -76.40 (-4.89%)
     
  • FTSE 100

    7,123.68
    -6.03 (-0.08%)
     
  • Nikkei 225

    29,518.34
    +160.52 (+0.55%)
     

Hormel Foods (HRL) is in Overbought Territory: What's Next?

  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.

Hormel Foods Corporation HRL has moved higher as of late, but there could definitely be trouble on the horizon for this company. That is because HRL is now in overbought territory with an RSI value of 75.30.

What is RSI?

RSI stands for ‘Relative Strength Index’ and it is a popular indicator used by technically focused investors. It compares the average of gains in days that closed up to the average of losses in days that closed down; readings above 70 suggest an asset is overbought, while an RSI below 30 suggests undervalued conditions are present.

Other Factors

Yet HRL’s high RSI value isn’t the only reason for investors to be concerned, as there has been some decidedly negative earnings estimate revisions Hormel Foods' stock as of late. This is especially true when investors dive into some of these revisions in order to get a better picture of HRL’s prospects for the near term.

Over the past one month, investors have witnessed 2 earnings estimate revision lower compared to none higher for the current year. The consensus estimate for HRL’s has also been on a downward trend over the same time period too, as the estimates have fallen 1.1% over the last two months.

If this wasn’t enough, Hormel Foods also has a Zacks Rank #5 (Strong Sell) which puts it into unfortunate company among its peers. So, given all of these factors, investors may want to consider exiting this stock now before it falls back to Earth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot stocks we're targeting >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Hormel Foods Corporation (HRL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research