Credit Suisse reiterated its outperform rating on Hormel Foods, saying the company will issue a strong earnings forecast for next year.
"Our meeting with Hormel management last week reinforced our positive view on the stock and increased our confidence that Hormel will guide to a stronger fiscal 2017 than the consensus view," Robert Moskow wrote in a note to clients Tuesday.
"In an environment where packaged food peers are rationalizing their portfolios and turning almost exclusively to cost-cutting to adjust to slowing consumer demand, Hormel has increased its investment in advertising and new product launches," he said.