Can Spam Gains Keep Hormel’s Stock High Long-Term?
As the novel coronavirus stubbornly persists in the U.S. and globally, refusing to fade with hot summer weather arriving, companies like Hormel (NYSE: HRL) are benefiting from the growth in demand for canned meat and other shelf-stable comestibles.
Like many companies positioned to gain from the pandemic, Hormel's shares are currently trading near their highest prices ever. But the question remains: Can the food company lock in its gains even once COVID-19 fades or is brought under control by a vaccine?
After years of losing ground to more healthy and perhaps more glamorous dietary choices such as vegan menus or grass-fed meats, the one-time staple of canned meat made a powerful comeback this year. With people stockpiling food for coronavirus lockdowns and other pandemic emergencies, Bloomberg reports a more than 70% spike in American canned meat purchases during the 15 weeks leading up to June 13. Canned meat is also selling vigorously in Europe and Asia.
Source Fool.com
