Hormel Foods (HRL) closed at $44.47 in yesterday’s trade. HRL is trading 21.3% above its 100-day moving average, 12.1% above its 50-day moving average, and 10.7% above its 20-day moving average. The stock has risen 6% in the last two months.
HRL’s peers in the industry include Tyson Foods (TSN), ConAgra Foods (CAG), and Sanderson Farms (SAFM). Tyson Foods closed at $62.41, which is 25.4%, 15.7%, and 12.4% above its 100-day, 50-day, and 20-day moving averages, respectively. The stock has risen 19% in the last two months due to the company’s revenue growth in fiscal 4Q15, updated guidance, and benefits from the Hillshire Brands acquisition.
ConAgra Foods closed yesterday’s trade at $41.70, which is 2.2% above its 100-day moving average, 2.7% above its 50-day moving average, and 3.5% above its 20-day moving average. CAG has fallen 3.1% in the last two months.
SAFM is trading 17.5%, 11.1%, and 8.3% above its 100-day, 50-day, and 20-day moving averages, respectively, and has risen 10.8% in the last two months. SAFM closed at $86.80 in yesterday’s trade.
The Guggenheim S&P 500 Equal Weight Consumer Staples ETF (RHS) invests 2.6% of its holdings in HRL, 2.6% of its holdings in TSN, and 2.7% of its holdings in CAG. RHS is trading 4.2%, 2.5%, and 3.2% above its 100-day, 20-day, and 50-day moving averages. It closed yesterday’s trade at $117.15.
Analysts’ estimates indicate rises of 11.1% for TSN and 8.6% for CAG for the next 12 months. Meanwhile, HRL and SAFM have already beaten estimates by 5.8% and 9.5%, respectively. As of yesterday, HRL, TSN, and SAFM have risen 12.5%, 17.0%, and 12.1%, respectively, on a YTD (year-to-date) basis. CAG has fallen 1.1% YTD, and RHS has risen 0.97% YTD. The iShares Morningstar Mid-Cap Value ETF (JKI) also invests 1.3% of its portfolio in CAG.
In the next part of this series, we’ll look at the rise in earnings in fiscal 1Q16 and what contributed to it.