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Hormel Foods Corporation – Best Food Stock To Buy

When markets turn volatile, investors rush away from growth and cyclical sectors to defensive stocks. Industries like utility, pharmaceuticals, and consumer staples are considered to be defensive and “safe-havens”. The food sector is counted among the consumer staples stocks because of its rather recession-resistant business dynamics. People need to eat to survive. They will spend money on basic food and groceries regardless of how bad the economy is or whether there is a natural disaster, a war, or a pandemic. As a result, the demand for food products tends to hold during all phases of the economic cycle. If you are one of those investors who feels the need to invest in such defensive plays, you might want to buy food stocks now. After running up during the pandemic months, many of the top food stocks have seen prices consolidate or take a breather.

Hormel Foods and Its Brands

Hormel Foods is a leading food business in America. It was founded over a century ago, in the year 1891. Hormel Foods is best known for its meat products. It is among the leading sellers of spam, sausage, and pork. The company has over 40 brands in multiple categories, and its brands usually hold the first or second position in their respective categories. Besides meat, Hormel Foods is also a leading player in the peanut butter segment as it owns the famous brand Skippy – a household name in America. The SPAM and HORMEL brands are the company’s most iconic. Other well-known brands include Jennie-O, Wholly Guacamole, Del Fuerte, and Applegate. Hormel Foods has a well-diversified business within the food processing industry and is considered one of the best food stock to buy.

Buy Food Stocks Now

Hormel Foods stock is up 26% over 5 years. The growth is not spectacular considering the fact that the food industry is a mature one. However, the stock did pay a dividend and was trading at a 2%+ yield on 23rd July 2021. The PE ratio of the stock was around 29 at that time.

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