Jim Cramer Says Food Stocks Like Hormel Foods Corporation (HRL) Could Benefit From A Merger

We recently published 13 Stocks That Jim Cramer Discussed. Hormel Foods Corporation (NYSE:HRL) is one of the stocks Jim Cramer recently discussed.

Hormel Foods Corporation (NYSE:HRL) might have been able to withstand the losses that the broader food sector had faced had it not been for a disastrous 13% share price drop in August. The shares fell after the firm’s third quarter earnings report, which saw its third quarter adjusted EPS and midpoint fourth quarter EPS guide of $0.35 and $0.39 miss analyst estimates of $0.41 and $0.49. After the earnings report, Cramer explained that Hormel Foods Corporation (NYSE:HRL) was suffering as the disruption in the US beef industry had stripped the firm of its pricing power. This time, he discussed the firm in the context of the broader woes of the food sector as he wondered whether a merger might be a way out for Hormel Foods Corporation (NYSE:HRL) and help it to lower costs:

“But the answer is, you take out costs, but I think you have to begin the great merger of this sector. You have to begin the great merger of this sector. You have to start putting together big deals, take out big costs. . . .They have to just become, this should be like a big three. It’s over. You can’t grow. . .and maybe under this administration you could put together a Hormel, Pepsi, I don’t know what.”

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Disclosure: None. This article is originally published at Insider Monkey.