HRL Stock Surges 10% With A 5-day Winning Spree On Earnings Beat
Hormel Foods (HRL) – a developer and distributor of meat and food products – hit a 5-day winning streak, with cumulative gains over this period amounting to 10%. The company’s market cap has surged by about $1.3 Bil over the last 5 days and currently stands at $14 Bil.
The stock has YTD (year-to-date) return of 10.2% compared to 0.7% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity or a trap.
What Triggered The Rally?
[1] Preliminary Q1 2026 Earnings Beat
- Announced preliminary Q1 adjusted EPS of $0.34, exceeding analyst consensus of $0.32 [6, 8]
- Reaffirmed full-year 2026 guidance [1, 2]
- Impact: Stock price up 4.44% on day of announcement, Initiated a 5-day winning streak
Opportunity or Trap?
Below is our take on valuation.
There are a few things to fear in HRL stock given its overall Weak operating performance and financial condition. In addition, keeping in mind its High valuation, we think that the stock is Unattractive (For details, see Buy or Sell HRL).
But here is the real interesting point.
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Returns vs S&P 500
The following table summarizes the return for HRL stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | HRL | S&P 500 |
|---|---|---|
| 1D | 2.5% | 0.8% |
| 5D (Current Streak) | 10.1% | 0.7% |
| 1M (21D) | 4.9% | -0.4% |
| 3M (63D) | 17.1% | 5.4% |
| YTD 2026 | 10.2% | 0.7% |
| 2025 | -21.3% | 16.4% |
| 2024 | 1.2% | 23.3% |
| 2023 | -27.5% | 24.2% |
Gains and Losses Streaks: S&P 500 Constituents
There are currently 70 S&P constituents with 3 days or more of consecutive gains and 27 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 33 | 14 |
| 4D | 26 | 10 |
| 5D | 7 | 2 |
| 6D | 0 | 1 |
| 7D or more | 4 | 0 |
| Total >=3 D | 70 | 27 |
Key Financials for Hormel Foods (HRL)
Last 2 Fiscal Years:
| Metric | FY2024 | FY2025 |
|---|---|---|
| Revenues | $11.9 Bil | $12.1 Bil |
| Operating Income | $1.0 Bil | $895.2 Mil |
| Net Income | $805.0 Mil | $478.2 Mil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ3 | 2025 FQ4 |
|---|---|---|
| Revenues | $3.0 Bil | $3.2 Bil |
| Operating Income | $228.6 Mil | $221.4 Mil |
| Net Income | $183.7 Mil | $-56.1 Mil |
While HRL stock looks attractive given its winning streak, investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.