Hormel Foods (NYSE: HRL) stock is getting punished by Wall Street, with its shares currently down around 30% from their 52-week high. That compares to a roughly 10% drop for the average consumer staples stock, using the Vanguard Consumer Staples ETF as a proxy.

Hormel is facing problems common within the food space, but it also has some company-specific issues dragging it down. Still, the historically high yield on offer today may be worth the risk. Let's dive in.

Like all of its peers, Hormel is trying to offset the margin squeeze that has come from rising inflation. Indeed, as the costs for ingredients, employees, and transportation increase, companies have little choice but to raise prices or find ways to cut those costs unless they are willing to just make less money. Not surprisingly, Hormel is cutting costs and raising prices, which is the right long-term move.

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Source Fool.com