HRL - Hormel: Hit The Fade And Look To Buy Below $25
2024-04-22 14:07:47 ET
Summary
- We had suggested that investors could play for a shorter term upside with Hormel Foods Corporation in our last update.
- Hormel Foods stock outperformed the S&P 500 by over 20% in the last two and a half months after our article.
- We tell you why things look bleak for the long term, and hitting the Hormel Foods exits now would be a good bet.
In our last update for Hormel Foods Corporation ( HRL ), we suggested that the bears were pushing deep into oversold territory and risks for a countertrend move were high. We expected a bounce, one that should reset sentiment and prepare the stock for the next big move lower. Specifically, we said:
Hormel: Hit The Fade And Look To Buy Below $25Markets seldom move in a straight line though the last 15 weeks in the SPY seem to suggest otherwise. HRL's drop has been rather extreme for a consumer staples company and while there are headwinds, the sentiment looks extremely one-sided. Relative to its 200 day moving average, HRL was only lower on a handful of occasions. The setup looks good for a bounce that clears away the excess pessimism.