Hormel Foods Stock Drops 45% From High Despite 58 Years of Dividend Hikes, Trades at Rare Valuation Lows But Has Growth Drivers For Potential Rebound
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Hormel Foods (HRL) has paid dividends for 382 consecutive quarters and raised its dividend for 58 straight years, making it a rare Dividend King stock.
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Despite its strong dividend history, Hormel stock has dropped 45% from its high, marking its worst pullback in 50 years and making valuations unusually cheap.
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Hormel aims to grow its higher-margin foodservice business, especially in convenience stores, through its Planters brand acquisition. This could drive respectable long-term earnings growth.
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At under 21x forward earnings, Hormel trades near once-in-a-decade low valuation levels, presenting a compelling time to buy the stock.
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Though down significantly, Hormel has an excellent long-term track record and growth drivers that could allow the stock to rebound over time.