Jim Cramer Says “It is Not Crazy to Believe That Hormel’s Close to a Turnaround”

HRL -0.09%

Hormel Foods Corporation (NYSE:HRL) is one of the stocks Jim Cramer recently talked about. Cramer said that he likes that the company has “good sales momentum.” The Mad Money host stated:

“When the whole packaged food sector came under attack by the GLP-1 weight loss drugs, I thought Hormel might perform better because it’s all about protein… It hasn’t worked out that way… Main problem, Hormel’s cost, many of which are commodities. They’ve gotten out of control. There’s plenty of demand for their product. Sales growth has been strong. It’s just high commodity costs… [have] taken a meat ax to their margins…It is not crazy to believe that Hormel’s close to a turnaround. Listen to me on this. Stock’s fairly cheap, selling for less than 16 times next year’s numbers.

Photo by Joshua Mayo on Unsplash

Hormel Foods Corporation (NYSE:HRL) develops and distributes a wide range of meat, nut, and other food products, including fresh, frozen, and shelf-stable items

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Disclosure: None. This article is originally published at Insider Monkey.