Is Hormel Foods Stock Underperforming the Dow?

Austin, Minnesota-based Hormel Foods Corporation (HRL) develops, processes, and distributes a range of meat, nuts, and other food products to foodservice, convenience store, and other commercial customers in the United States and internationally. The company, valued at $10.9 billion, operates through three segments: Retail, Foodservice, and International. 

Companies with a market cap of $10 billion or more are typically referred to as “big-cap stocks.” HRL fits squarely into that category, with its market cap exceeding this threshold and reflecting its substantial size and influence in the packaged foods industry.     

However, HRL stock is down 22.8% from its 52-week high of $31.86 touched on July 10, 2025. Moreover, HRL has grown 7.3% over the past three months and has lagged behind the Dow Jones Industrial Average ($DOWI), which rose 10.7% during the same period. 

Zooming out a little further, the scenario remains the same. Over the past 52 weeks, HRL has declined 18.2%, underperforming DOWI’s 23.2% gain.   

HRL has been trading above its 200-day moving average since this month and above its 50-day moving average since the end of May.       

On May 28, HRL stock grew 12.6% following the release of its Q2 2026 earnings. The company’s revenue for the quarter came in at $3 billion, topping Wall Street’s estimates. Moreover, its adjusted EPS amounted to $0.40, also coming in on top of the Street’s forecasts. Hormel expects full-year earnings in the range of $1.28 to $1.37 per share, with revenue in the range of $12.2 billion to $12.5 billion.        

When stacked against its peer, McCormick & Company, Incorporated (MKC), HRL has outperformed. Over the past year, MKC stock has declined 34.2%.

However, sentiment on HRL remains skeptical. Among the 10 analysts covering the stock, the consensus rating is a “Hold.” Its mean price target of $26.29 suggests 6.2% upside from current levels.