Hormel: Worth Considering At A 4% Yield (Rating Upgrade)
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Hormel Foods has been upgraded from a sell to a hold after a significant decline in stock price. The company's dividend yield is now above 4%, supported by free cash flow, but valuation concerns and market risks remain.
February 15, 2025 | 11:15 am
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NEUTRAL IMPACT
Hormel Foods has been upgraded from a sell to a hold due to a 35% decline in stock price over 27 months. The dividend yield is now above 4%, supported by free cash flow. However, valuation remains unappealing with modest EPS growth expected. Risks include market volatility and issues with the Planters brand.
The upgrade from sell to hold suggests a neutral outlook, indicating that the stock may not decline further in the short term. The high dividend yield is a positive factor, but valuation concerns and market risks balance the outlook, leading to a neutral score.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100