Hormel Foods Is A Good Buy For The 'Boring' Investor
Summary
- DCF valuation shows that the stock is fairly valued.
- HRL has raised its EPS estimates for 2016 and has a steady business.
- HRL is more expensive compared to the greater market but is risk-reducing.
Hormel Foods (NYSE:HRL) beat on earnings and revenue because of improved net income margins for the first quarter of fiscal year 2016. I decided to do a financial valuation on a Free Cash Flow to Firm (FCFF) basis so that I could know where the stock is standing on a valuation matrix. As expected, I found out that the stock is a hold on a FCFF basis despite the recent upward trend in the stock price post 2015 results...
READ MORE
Hang On To Shares Of National Oilwell Varco
Summary
- After a depressed eighteen months, National Oilwell’s stock is rising at a substantial rate.
- Despite a recent rally of 16%, its share price has even more upside potential.
- Oil prices are likely to extend their rally amid production talks and other positive reports.
National Oilwell Varco Inc (NYSE:NOV) experienced a very tough year in fiscal 2015. It completed the spin-off of its distribution business into a separate entity. It further split its two reaming business segments into four, in order to focus more efficiently on each area of operations. On the other hand, the company also raised its quarterly dividends by 75% to $0.46 per share, a move that, in the environment of the moment, portrayed great confidence in its future cash flows...
READ MORE
