Earnings GrowthClear building blocks for a return to EPS growth as the company should lap Planters production issues and ongoing transformation initiatives gather momentum.
Market SentimentSentiment toward the shares seems skewed negatively, and consensus estimates already assume HRL’s targeted $250MM operating profit improvement is unsuccessful, which presents an opportunity if the company exceeds expectations.
ValuationThe shares trade at a premium to most food stocks; however, they also trade at a wider discount to their historic P/E and EV/EBITDA, suggesting potential for upside.