United Parcel Service (UPS) and Hormel Foods (HRL) have seen their stocks plummet over 55% since early 2022, but signs of a potential turnaround are emerging for both companies. UPS is restructuring its operations, having closed 93 facilities and invested in automation, which is projected to save $3.5 billion. While revenues and earnings fell in 2025, a 7.1% increase in revenue per piece suggests that its turnaround efforts are gaining traction, with 2026 expected to be a pivotal year.
Hormel, on the other hand, has recorded five consecutive quarters of organic sales growth and is refocusing its business strategy by divesting its commodity-based turkey segment. The company anticipates adjusted earnings growth of 4% to 10% in fiscal 2026, bolstered by a shift towards value-added products and a protein-centric portfolio that may benefit from evolving consumer trends.
For market professionals, both UPS and Hormel present intriguing opportunities. Their low valuations, coupled with strong dividend yields of 6.9% and 5%, respectively, make them compelling candidates for investors looking to capitalize on potential rebounds before broader market recognition.
Source: fool.com