Track market-moving stories before they get noisy

Key Takeaways NYT is highlighted for earnings estimate gains, 19.1% expected earnings growth and a 1.22% dividend yield.COCO offers 48.7% expected earnings growth and has seen current-year earnings estimates edge higher.HRL combines 9.5% expected earnings growth, higher earnings estimates and a 4.63% dividend yield. Hostilities have resumed in the Middle East, with the United States carrying out its 10th consecutive night of strikes on Iran. Oil prices have again been surging, and consumers fear that inflation, which somewhat eased in June, might increase again.

Markets have remained volatile for most of June and July, triggered by concerns over the sustainability of tech stocks. Renewed fears of a slowing economy could further derail stocks. Given this scenario, we recommend buying three defensive stocks from the consumer staples sector, namely, The New York Times Company (NYT - Free Report) , The Vita Coco Company, Inc. (COCO - Free Report) and Hormel Foods Corporation (HRL - Free Report) .

Volatility Grips Wall StreetOil prices have surged more than 5% since the United States resumed its attack on Iran earlier this month after President Donald Trump declared that the ceasefire is “over.” On Tuesday, energy prices moved up and down as investors closely watched a fresh diplomatic push toward ending the ongoing hostilities.

West Texas Intermediate crude futures rose 2% to settle at $84.91 a barrel, while international benchmark Brent was up 2% to end at $91.01 per barrel.

Inflation eased substantially in June after a temporary memorandum of understanding was reached by the United States and Iran to end hostilities. The consumer price index (CPI) dipped 0.4% month over month in June, after increasing 0.5% in May. The monthly decline in CPI was the biggest since April 2020.

Year over year, CPI declined to 3.5% in June, more than the consensus estimate of a reading of 3.8%. The decline follows a reading of 4.2% in May.

However, concerns have been growing that inflation could spike again if oil prices continue to surge after renewed hostilities between the United States and Iran. Markets have already been volatile over the past month, triggered by a massive tech sell-off on growing worries over the sustainability of AI-related stocks.

Although inflation eased in June, it remains sharply higher than the Federal Reserve’s 2% target. High inflation has posed a major challenge for the Fed. The central bank has been contemplating an interest rate hike by the end of this year.

Markets are pricing in a 25-basis-point rate hike by the Fed sometime this year. Higher borrowing costs could further impact the spending power of consumers and the broader economy.

3 Consumer Staple Stocks With UpsideThe New York Times CompanyThe New York Times Company is a leading global media organization focused on delivering high-quality journalism and information. Founded in 1851 and incorporated in 1896, NYT has evolved from a traditional newspaper publisher into a diversified digital-first media company with a strong global subscriber base and a growing portfolio of lifestyle and entertainment products. 

The New York Times Company has an expected earnings growth rate of 19.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1% over the last 60 days. The New York Times Company has a beta of 0.96 and a current dividend yield of 1.22%. NYT has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Vita Coco CompanyThe Vita Coco Company, Inc. provides a beverage platform. COCO’s brands include coconut water, Vita Coco; clean energy drink Runa; sustainable enhanced water, Ever & Ever and protein-infused water, PWR LIFT.

The Vita Coco Company’s expected earnings growth rate for the current year is 48.7%. The Zacks Consensus Estimate for the current year’s earnings has improved 0.6% over the past 60 days. COCO currently has a Zacks Rank #2 (Buy). The Vita Coco Company has a beta of 0.77.

Hormel Foods CorporationHormel Foods Corporation is a leading manufacturer as well as marketer of various meat and food products in the United States and international markets. 

Hormel Foods Corporation has an expected earnings growth rate of 9.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.5% over the last 60 days. HRL has a Zacks Rank #2. Hormel Foods Corporation has a beta of 0.34 and a current dividend yield of 4.63%.

Key Takeaways Hormel Foods is selling its Brazil-based Ceratti operations to Zanchetta Alimentos LTDA.Hormel Foods says the deal should have minimal impact on adjusted fiscal 2026 results.Hormel Foods' Ceratti operations are expected to continue without disruption until the deal closes. Hormel Foods Corporation (HRL - Free Report) is continuing to reshape its portfolio, agreeing to sell the Brazil-based CERATTI operations to Zanchetta Alimentos LTDA as the packaged food company sharpens focus on higher-growth markets and streamlines the international business.

The divestiture reflects Hormel Foods' broader strategy of directing resources toward markets and brands with stronger long-term growth prospects while reducing operational complexity. The transaction is expected to close in the coming weeks. Until then, Ceratti's operations are expected to continue without disruption for employees, customers and business partners.

Importantly for investors, Hormel Foods indicated that the sale is expected to have only a minimal impact on adjusted fiscal 2026 results.

The move also aligns with a broader pattern that has emerged across Hormel Foods' portfolio strategy over the past year. The company recently exited the whole-bird turkey business and has reduced exposure to lower-margin or more volatile operations while increasing its emphasis on branded, value-added protein offerings. Those efforts appear to be gaining traction, as Hormel Foods delivered its sixth consecutive quarter of organic sales growth and posted double-digit adjusted earnings growth in the second quarter of fiscal 2026.

The company's international business has also been showing encouraging momentum. International segment profit climbed 20% in the second quarter of fiscal 2026, supported by strong performance in China and robust demand for SPAM exports. The Ceratti sale marks another step in Hormel Foods' ongoing portfolio optimization efforts to continue refining its portfolio and international footprint.

Hormel Foods’ Share Price PerformanceShares of this Zacks Rank #2 (Buy) company have gained 14.3% over the past three months, outperforming the industry’s 5.3% decline and the broader Consumer Staples sector’s 6.7% increase. However, the stock lagged the S&P 500’s 16.3% advance over the same period.

HRL Stock's Past 3 Months’ Performance
Image Source: Zacks Investment Research

Is Hormel Foods a Value Play Stock?Hormel Foods currently trades at a forward 12-month P/E ratio of 17.17 compared with the industry average of 12.45. This valuation places the stock at a premium relative to peers, indicating broader market expectations around its business stability and ability to navigate current cost and demand dynamics.

HRL Valuation Picture
Image Source: Zacks Investment Research

Other Stocks to ConsiderDarling Ingredients Inc. (DAR - Free Report) develops, produces and sells sustainable natural ingredients from edible and inedible bio-nutrients. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Darling Ingredients’ current fiscal-year sales and earnings indicates growth of 12.3% and 575%, respectively, from the prior-year reported levels. Darling Ingredients delivered a trailing four-quarter earnings surprise of 16.1%, on average.

Tyson Foods, Inc. (TSN - Free Report) operates as a food company worldwide. It operates through four segments: Beef, Pork, Chicken and Prepared Foods. TSN currently carries a Zacks Rank of 2. Tyson Foods delivered a trailing four-quarter earnings surprise of 18.1%, on average.

The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales and earnings indicates growth of 4.4% and 1%, respectively, from the year-ago reported numbers.

Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA holds a Zacks Rank of 2. Mama's Creations delivered a trailing four-quarter earnings surprise of 129.2%, on average.

The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 30% and 73.3%, respectively, from the year-ago figures.

Hormel Foods has increased its dividend for a stunning 60 consecutive years. It's a vaunted Dividend Aristocrat more than twice over. Hormel has a very good financial position. Its long-term debt/equity ratio is 0.4, while the interest coverage ratio is around 10. The P/E ratio is sitting at 17.4, based on midpoint guidance for this year's adjusted EPS. That's about as low as I've seen it on this stock.

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Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Hormel Foods (HRL - Free Report) Hormel Foods Corporation is a manufacturer and marketer of various meat, nuts and other food products in the U.S. and international markets. Earlier, the company used to operate through five segments, which were later consolidated into four. Hormel Foods’ portfolio includes brands such as Planters, Skippy, SPAM, Applegate, Wholly, Hormel Black Label, Fontanini, Bacon 1 and Jennie-O, along with 30 other brands. The company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats.

HRL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Consumer Staples stock. HRL has a Momentum Style Score of B, and shares are up 21.9% over the past four weeks.

Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.03 to $1.46 per share. HRL boasts an average earnings surprise of +3.2%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, HRL should be on investors' short list.

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Hormel Foods has been in a slow-motion bear hug. The stock sits 22.8% below its 52-week high, and the trailing GAAP payout ratio looks ugly after a $234 million non-cash impairment and a $61 million whole-bird turkey divestiture loss. But underneath the noise, the cash engine at Hormel Foods (NYSE:HRL | HRL Price Prediction) is still humming, and this Dividend King‘s payout looks safer than the headlines suggest.

Dividend Snapshot Metric Value Annual Dividend $1.17 per share Dividend Yield 4.79% Consecutive Years of Increases 60 years Most Recent Increase 1% (December 2025) Dividend King Status Yes The GAAP Optics Look Worse Than the Cash Reality Metric Value Assessment GAAP EPS Payout (FY25) 132.4% Distorted by impairments Adjusted EPS Payout (FY25) ~81% ($1.16/$1.43) Elevated FCF Payout (FY25) 118.5% Cyclical trough 5-Yr Avg FCF Payout 77.7% Healthy norm FY25 dividends of $633.2 million outran free cash flow of $534.3 million, a $98.8 million shortfall. That’s the panic. But Q1 FY26 operating cash flow jumped to $349.2 million and Q2 surged 217% to $178.9 million. The trough is behind them.

A Fortress Balance Sheet With Room to Spare Metric Value Cash on Hand (Q2 FY26) $826.75 million Total Liabilities $5.477 billion Shareholders Equity $7.916 billion EBITDA (TTM) $1.251 billion Beta 0.343 Equity meaningfully exceeds total liabilities, and the cash pile grew 23.45% year over year. This balance sheet has the cushion to sustain the dividend through a cyclical trough.

60 Years of Increases and Counting Year Annual Dividend 2026 $1.17 2025 $1.16 2024 $1.13 2023 $1.10 2022 $1.04 No cuts across the 27-year dataset, including 2008 and 2020. Recent growth has slowed to a token 1%, which tells me management is preserving the streak while it rebuilds margins.

Management Calls Out the “Legacy” CEO Jeff Ettinger said on the Q4 FY25 call: “Demonstrating our long-standing commitment to shareholder returns, we recently announced a 1% increase in our quarterly dividend… This marks an impressive milestone, 60 years of uninterrupted dividend increases at Hormel Foods, a legacy we’re extremely proud of.” On Q2 FY26, he added that results gave them “even greater confidence in our ability to deliver our full-year outlook.” Five directors, including Chairman William Newlands, bought stock at $22.65 on March 31, 2026. Insiders are voting with their wallets.

Verdict: Safe, With an Asterisk Dividend Safety Rating: Safe. The adjusted EPS payout near 81% is tight, but FY26 guidance of $1.43 to $1.51 in adjusted EPS pulls forward coverage back toward historical norms, and food spending has been remarkably stable at 7.1% to 7.4% of total PCE through 2026. The bull case strengthens if the Transform and Modernize initiative continues to lift margins (Q2 adjusted operating margin already expanded to 9.9% from 9.1%). The risk case builds if commodity inflation reignites and Retail segment growth stays flat. For retirees, a 4.79% yield from a 60-year Dividend King is a reliable anchor.

Skippy ​peanut butter maker Hormel Foods beat ‌second-quarter sales and profit estimates on Thursday, helped by strong demand for its chicken ​and turkey products.

Hormel Foods reported a lower profit in the second quarter and said its full-year profit would be lower than expected, despite reporting progress in its turnaround strategy.

While the top- and bottom-line numbers for Hormel (HRL) give a sense of how the business performed in the quarter ended April 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

John Ghingo, Hormel Foods president, joins 'Squawk on the Street' to discuss the state of the consumer, where consumers are moving and much more.

Hormel Foods' stock was halved over the last five years, but might start rebounding with more results like it just delivered.

Hormel Foods Corporation reported positive Q2 results. Input cost inflation has weighed on HRL's margins, but retail segment earnings are finally stabilized in the report. A stabilizing earnings outlook makes HRL's dividend yield safer and more attractive.

AUSTIN, Minn., June 2, 2026 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, announced today that John Ghingo, president, and Paul Kuehneman, interim chief financial officer and controller, will participate in a fireside chat at the virtual Oppenheimer 26th Annual Consumer Growth & E-Commerce Conference on Monday, June 8, 2026.

Five Dividend Aristocrats with streaks ranging from 54 to 70 consecutive years of payout hikes are currently trading below Wall Street's consensus price targets, and four of the five just beat their most recent EPS estimates.

Hormel Foods Corporation (HRL) Presents at Oppenheimer 26th Annual Consumer Growth and E-Commerce Conference Transcript