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Hormel And Amdocs Hit The Casualty List
Forbesยท 2025-10-06 13:30
Group 1: Hormel Foods Corp. - Hormel Foods Corp. is known for its products like ham and bacon, but it owns around 40 brands and sells in approximately 80 countries [4] - The stock experienced a 17% decline in the third quarter due to rising costs for pork and beef, which are impacting profit margins [4] - At a recent price of about $25, the stock trades at 1.1 times revenue and 2.7 times book value, which are considered attractive multiples [4][5] - Despite Wall Street's lack of enthusiasm, with only two out of twelve analysts rating it a "buy," the company has a strong historical record, having never posted a loss since going public in 1928 [5] Group 2: Amdocs Ltd. - Amdocs Ltd. provides software and services primarily to communications and entertainment companies, with a significant historical reliance on AT&T as a customer [6] - The stock fell over 9% in the latest quarter, but six out of seven analysts covering it recommend buying [6] - Revenue decreased by about 3% over the past year due to shedding low-margin businesses, while earnings increased [7] Group 3: Eastman Chemical Co. - Eastman Chemical Co. shares fell 17% in the recent quarter, attributed to signs of a slowing economy [10] - Insider purchases were noted, with the CEO and CFO increasing their stakes, indicating confidence in the company's long-term prospects [9] Group 4: LKQ Corp. - LKQ Corp. recycles auto parts and operates around 1,500 high-tech junkyards in the U.S. and Europe [11] - The stock declined nearly 17% in the past quarter, with sales and earnings missing expectations, particularly in European operations [12] - The expectation is that rising car prices in the U.S. due to tariffs may lead consumers to keep their cars longer, benefiting the recycled-parts business [11] Group 5: Ingredion Inc. - Ingredion Inc. produces ingredients for foods and beverages, with a focus on sweeteners [13] - Despite a revenue dip in the past year, earnings remained strong, yet the stock fell 9% last quarter [13] - The company has achieved a return on stockholders' equity of 15% in 11 of the past 15 years, and the stock is considered cheap at 12 times earnings [13]