Should I Buy Hormel Foods (HRL)? Finance YouTuber Analysis

Hormel Foods, with its cured and packaged meats, is positioned to benefit from new dietary guidelines promoting higher protein intake. The stock is also noted to be down 25% over the last year, suggesting it might be in good value territory.

“Hormemell Foods also with some of the cured meats and some of their packaged meats is going to be a big winner as well. Hormemell I believe is HRL, that is Horell Foods Corporation. You might look at that one as well. That one is down 25% over the last year. So, one that might actually be in good value territory right now.”

The YouTuber identifies Hormel as a stable food products company that has paid dividends for 60 years. He notes its current dividend yield of almost 5% combined with a 4% dividend growth rate, suggesting a 9% expected return. He also highlights its attractive valuation (10-15x earnings) and low debt.

“O Ormel, que es una compañía de productos de alimentación muy estable que lleva pagando dividendos 60 años, que vemos que el dividendo lógicamente crece menos. Es muy difícil encontrar las dos cosas, dividendo alto y que la empresa crezca mucho el dividendo. Pero, por ejemplo, diríamos, "Oye, pues esta empresa me da casi un 5% y va a crecer el dividendo a un cuatro, es un nueve de rentabilidad."”