Hormel Foods (HRL): Evaluating Valuation After CFO Change, Q4 Guidance Shift, and New Product Launches

Hormel Foods (NYSE:HRL) is getting attention this week following the appointment of Paul Kuehneman as interim chief financial officer. This move comes as the company adjusts its Q4 2025 earnings outlook, manages a voluntary product recall, and introduces a new bacon collaboration.

See our latest analysis for Hormel Foods.

Hormel Foods’ year has been defined by product launches, strategic partnerships, and executive changes, but the market response has been tough. The stock’s 1-year total shareholder return stands at -26.9%, with momentum sharply negative this month following a weak Q4 outlook and other headwinds that have weighed on sentiment. Over the longer term, total returns have lagged the market, suggesting risk perception remains high despite efforts to refresh the brand and leadership team.

If you want to see which companies are thriving even when the market gets choppy, now’s an ideal time to broaden your perspective and check out fast growing stocks with high insider ownership.

After such a steep selloff and continued uncertainty, is Hormel Foods a bargain hiding in plain sight, or are markets already accounting for all the challenges and future recovery in its share price?

Most Popular Narrative: 25% Undervalued

With the current price of $21.49 sitting well below the most popular fair value estimate of $28.75, the narrative highlights major differences between market sentiment and projected fundamentals. This sets the stage for a closer look at the drivers underpinning the valuation story.

Major supply chain automation, manufacturing footprint improvements, and the ongoing Transform and Modernize (T&M) initiatives are on track and expected to drive significant operational efficiencies and cost reductions. These efforts support long-run margin expansion and ultimately higher future earnings.

Read the complete narrative.

Curious how a traditional food company earns such a premium? Key analytical levers here include ambitious upgrades and future margin targets. Discover which bold, quantifiable bets support this narrative's optimism. One financial projection in particular might surprise you.

Result: Fair Value of $28.75 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent input cost inflation or shifting consumer trends could still pose challenges to Hormel Foods’ recovery narrative in the coming quarters.

Find out about the key risks to this Hormel Foods narrative.

Build Your Own Hormel Foods Narrative

If you see the story differently or want to dig into the numbers yourself, you can easily craft your perspective in just a few minutes. Do it your way.

Story Continues

A great starting point for your Hormel Foods research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Looking for More Investment Ideas?

Don’t miss your chance to fuel your portfolio with smart strategies. These opportunities are just waiting for you. Find companies transforming their industries with the right tools in moments.

Capture reliable yields and steady income opportunities as you browse these 21 dividend stocks with yields > 3% with impressive track records and yields higher than 3%. Tap into the power of next-generation artificial intelligence by checking out these 26 AI penny stocks, where high-potential innovators are shaping the technology landscape. Get ahead of the market by scanning these 854 undervalued stocks based on cash flows loaded with stocks trading below intrinsic value, primed for future upside.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include HRL.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

View Comments