Is Hormel Foods stock a good bet after raising its quarterly dividend?

On Thursday, Hormel Foods Corp (NYSE:HRL) shares rallied more than 5% after reporting its most recent quarterly results. The company announced its fiscal fourth-quarter revenue and earnings before markets opened, surpassing the consensus for analyst expectations. The company also raised its quarterly dividend by 6%.

Hormel Foods posted FQ4 GAAP earnings per share of $0.51, exceeding the average analyst estimate of $0.50. On the other hand, its quarterly revenue rocketed by 42.6% from the same quarter last year to $3.45 billion, exceeding the average expectation by $230 million. Hormel Foods also raised its quarterly dividend to $0.26 per share from $0.24.

The stock now trades at a forward dividend yield of about 2.30%.

Is it too late to buy HRL stock?

From an investment perspective, Hormel Foods shares trade at reasonable trailing 12-month and forward P/E ratios of 27.20 and 22.14, respectively. Therefore, value investors could find it as an exciting option for their portfolios.

On the other hand, analysts expect its earnings per share to increase by 12.97% next year, before rising at an average annual rate of 6.70% over the next five years.

Therefore, it could also gain the attention of long-term growth investors.

Technically, Hormel Foods stock seems to have recently spiked to complete an upward breakout from a sideways channel formation. As a result, the stock has rallied closer to the overbought conditions of the 14-day RSI.

Therefore, investors could target potential technical pullback profits at about $43.54, or lower at $41.63, while $46.53 and $48.26 are crucial resistance zones.