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Hormel Foods - AI Stock Analysis

Analysis generated December 3, 2024

Hormel Foods Corporation, founded in 1891, is a publicly traded manufacturer and marketer of various food products worldwide. The company's product portfolio includes a variety of meat and food items, including well-known brands like SPAM, Skippy, and Jennie-O. Hormel's diversified product mix and strong brand portfolio have solidified its market position, contributing to consistent long-term growth.

Fundamental Analysis

### Revenue and Income

In the latest quarter, Hormel Foods reported revenue of $2.9 billion, which marked a growth of 1.14% compared to the previous quarter. While this quarterly growth is encouraging, comparing this with the same quarter last year reveals a slight decline of 1.58%. This indicates a potential slow-down in sales growth

### Net Income

Hormel Foods reported a net income of $177 million for the last quarter, representing a decrease of 6.64% compared to the quarter before. Despite this, net income increased by 8.62% year over year, reflecting positive long-term profitability trends.

### EBITDA

The EBITDA for the last quarter stood at $241 million, down 10.82% from the prior quarter. Interestingly, EBITDA shows a yearly increase of 4.31%, suggesting Hormel is managing its operations efficiently in the long-run.

### Valuation

One key metric, the Price-to-Earnings (P/E) ratio, stands at 22.68. This suggests that the valuation is within a reasonable range, neither particularly high nor low relative to its historical averages and the broader market.

### Insider Activity

It's worth noting that there has been insider selling within the last couple of months. This could be interpreted as a bearish signal, indicating that those closest to the operations may not foresee significant short-term growth.

Technical Analysis

### Current Stock Price

Hormel Foods' stock is currently priced at $31.82, showing a 2.91% increase over the past month, which indicates a positive short-term trend. When compared to the same period a year ago, the stock has appreciated 3.85%, confirming a persisting long-term positive trajectory.

### Moving Averages

The Simple Moving Average for the past 10 days (SMA10) stands at 31.87, marginally higher than the previous SMA10 of 31.75. This indicates an upward trend in the stock's price movement.

### Relative Strength Index (RSI)

Hormel Foods' RSI is currently at 48.7, placing it in a neutral condition. This indicates the stock is neither overbought nor oversold, providing no immediate buy or sell signal.

Alternative Data Analysis

### Job Postings and Employee Sentiment

Hormel Foods has 72 open positions currently listed on job boards, which represents a 5% reduction over the last couple of months. This might indicate that the company is focusing on cost-cutting measures, which is not generally a positive indicator for growth.

### Customer Acquisition

The company’s webpage attracts approximately 66,000 visitors monthly, showing no significant change recently. This stable trend suggests that Hormel Foods maintains a consistent level of interest among potential customers.

### Customer Engagement

On social media, Hormel Foods has 16,000 Instagram followers (a 6% increase recently) and 65,000 Twitter followers (a 1% decrease recently). The rise in Instagram followers indicates growing interest, while the slight decline in Twitter followers is not significant but worth monitoring.

### AI Stock Prediction

The AltIndex AI scores Hormel Foods at 52, suggesting a 'Hold' signal. This balanced view aligns with mixed indicators from both fundamental and technical analyses.

Conclusion and Recommendation

In conclusion, Hormel Foods showcases mixed signals from its fundamental, technical, and alternative data analytics. On one hand, the company boasts positive year-over-year growth in net income and EBITDA; on the other hand, the decrease in quarterly net income and EBITDA raises red flags. The technical indicators reflect a moderate upward trend, supported by stable social media engagement and web traffic figures.

Given the aggregation of these data points, the recommendation would be to hold on Hormel Foods stock. This allows for observation of future quarterly results for more concrete trends that can prompt a clearer buy or sell decision.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.