Hormel Foods is an American food company that is more than 100 years old. It focuses on protein-rich foods like spam, ham, meat, and poultry. Hormel foods own the number one and number two market positions in multiple product categories in which it has a presence. Its strong brand, large scale, and vast experience place it well for future long-term growth.
The monthly long-term chart for Hormel Foods shows a clean uptrend with major pullbacks in 2016-2017, 2019, and late 2020. The most recent pullback in late 2020 saw the price drop 12% from $52 to around $46. The $46 level has acted as a resistance in 2019 and is now acting as a support. The price during the last couple of months is starting to bounce back up from this support zone and looks poised to retest the $52 levels. A long position can be initiated with a stop loss below the $46 level, somewhere around $44.
Position entered into our long-term tracking portfolio today. The entry point is at $47.41 with a stop loss of $38.06 which is 18% below the entry point. The short-term to medium take profit at the top of the trend and is set at $61.10, giving a profit of 29%.
On the video and images above you will see the reason this stock was selected.
You will see the image is of a monthly chart of the stock showing the long-term upwards trend formed over the years. You will also see the entry point and the where the stop loss is placed. For more information please watch the video given.
Once it is time to move the original stop loss up you will see an additional image.