7 Best Vegan Stocks to Buy According to Hedge Funds

4. Hormel Foods Corporation (NYSE:HRL)

Number of Hedge Fund Holders: 31

Hormel Foods Corporation (NYSE:HRL) is a global branded food company operating in over 80 countries, with a portfolio featuring iconic brands like Planters, Skippy, SPAM, Hormel Natural Choice, and Justin’s. Among its offerings, the Happy Little Plants brand caters to consumers seeking plant-based protein alternatives, targeting vegan and vegetarian markets.

In Q3 2024, Hormel Foods Corporation (NYSE:HRL) reported net sales of $2.90 billion, a 2.2% year-over-year decline, largely due to weaker performance in its Retail and International segments. The Retail segment, including Justin’s, experienced a 7% drop in sales, primarily driven by lower volumes and pricing for whole bird turkeys and disruptions at its Suffolk, Virginia facility. Despite these challenges, Hormel Foods Corporation (NYSE:HRL) generated $218 million in operating cash flow, reflecting strong liquidity, and reduced capital expenditures compared to the previous year, showcasing effective cost management. The company also returned $155 million to shareholders through dividends, continuing its 96-year streak of uninterrupted payouts.

Stephens initiated coverage on the food company on October 3, giving it an Equal Weight rating with a $31 price target. The firm acknowledged Hormel’s leadership in its core product categories and its focus on expanding branded, value-added products. However, it also highlighted operational challenges, particularly in the Turkey segment, as key obstacles for the company.