Is Hormel Foods Stock a Buy?
Hormel Foods, the maker of Spam, Jennie-O, Skippy, and other packaged foods, generally isn't considered a high-growth investment. But over the past decade, Hormel's stock has rallied nearly 370%, buoyed by its slow and steady growth, and crushed the S&P 500's 190% gain.
Hormel has also stayed resilient over the past 12 months, advancing more than 20% as the COVID-19 crisis sparked aggressive purchases of packaged foods and other essentials. However, the stock is now trading near its all-time highs, and it doesn't look cheap at nearly 30 times forward earnings.
Does Hormel's reputation as a defensive stock justify that premium valuation, or should investors avoid it and stick with cheaper packaged-food plays like General Mills or Kraft Heinz instead?
Source Fool.com
