Hormel Foods Stock: Is HRL Underperforming the Consumer Defensive Sector?

Hormel Foods Stock: Is HRL Underperforming the Consumer Defensive Sector?

Mon, September 21, 2026 at 9:48 PM GMT+3 2 min read

• HRL -0.64%
• XLP +0.99%

With a market cap of $11.5 billion, Hormel Foods Corporation (HRL) is a global branded food company. The company owns a broad portfolio of well-known brands, including Planters, Skippy, SPAM, Hormel Natural Choice, Applegate, Wholly, Hormel Black Label, Columbus, and Jennie-O, along with more than 30 other brands.

Companies valued at $10 billion or more are generally classified as "large-cap" stocks, and Hormel Foods fits this criterion perfectly, exceeding the mark. Hormel Foods has also received recognition for its workplace culture, corporate responsibility, and community service efforts from organizations including U.S. News & World Report, Newsweek, and TIME.

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Shares of the Austin, Minnesota-based company have pulled back 22.2% from its 52-week high of $26.60. Shares of Hormel Foods have fallen 14.5% over the past three months, a steeper decline than the State Street Consumer Staples Select Sector SPDR ETF's (XLP) 1.5% drop over the same time frame.

HRL stock is down 12.8% on a YTD basis, underperforming XLP's 5.7% rise. Moreover, shares of the Skippy peanut butter maker have dipped 16.8% over the past 52 weeks, compared to XLP's 3.4% return over the same time frame.

Yet, the stock has been trading above its 200-day moving average since mid-April.

Hormel Foods shares tumbled 10.3% on Aug. 27 after the company cut its fiscal 2026 sales forecast to $12.1 billion - $12.2 billion, reflecting weak consumer demand, a 4% decline in retail sales, and a 9% drop in retail volumes. Q3 2026 revenue fell 2.4% to $2.96 billion, missing the estimate, as weaker retail and international demand and lower commodity-based pricing weighed on results, while organic sales growth guidance was narrowed to 1% - 2%.

Although Hormel raised its full-year adjusted EPS outlook to $1.45 - $1.51 and Q3 adjusted EPS of $0.37 beat the estimate, the weaker sales outlook and pressured consumer environment drove the sharp selloff.

In comparison, rival The Kraft Heinz Company (KHC) has outpaced Hormel Foods stock. Shares of Kraft Heinz have gained marginally on a YTD basis and declined 7.9% over the past 52 weeks.

Due to the stock's underperformance relative to the sector, analysts are cautious about its prospects. The stock has a consensus rating of "Hold" from the 10 analysts covering the stock, and the mean price target of $25.75 suggests a premium of 24.8% to current levels.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com