Why Hormel Foods Shot Up 16% This Week

Hormel Foods stock (NYSE: HRL) popped as much as 16% this week, according to data from S&P Global Market Intelligence. The company -- which owns snack food and protein brands -- beat earnings expectations for the last quarter and provided guidance that investors liked. Shares of Hormel Foods are still off close to 40% from all-time highs due to fears over weight loss drugs and their effects on food demand in the coming years.

Here's why Hormel Foods stock popped this week.

Last quarter, Hormel Foods beat earnings expectations, posting adjusted earnings per share (EPS) of $0.41 for the three months ending in January 2024. However, it is showing meager growth, with net sales up just 1% year over year and product volumes actually down 4% from a year earlier. Hormel owns brands like Planters and Corn Nuts, with a focus on protein-heavy snack food brands.

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Source Fool.com