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Hershey (HSY) Gains As Market Dips: What You Should Know
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Hershey (HSY - Free Report) closed at $223.55 in the latest trading session, marking a +1.37% move from the prior day. This change outpaced the S&P 500's 0.75% loss on the day. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq lost 0.11%.
Prior to today's trading, shares of the chocolate bar and candy maker had lost 2.53% over the past month. This has was narrower than the Consumer Staples sector's loss of 8.38% and the S&P 500's loss of 8.4% in that time.
Investors will be hoping for strength from Hershey as it approaches its next earnings release, which is expected to be November 4, 2022. On that day, Hershey is projected to report earnings of $2.07 per share, which would represent a year-over-year decline of 1.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.61 billion, up 10.43% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.21 per share and revenue of $10.22 billion, which would represent changes of +14.35% and +13.86%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Hershey. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Hershey is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Hershey is holding a Forward P/E ratio of 26.86. This valuation marks a premium compared to its industry's average Forward P/E of 24.66.
Investors should also note that HSY has a PEG ratio of 3.5 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Food - Confectionery stocks are, on average, holding a PEG ratio of 3.5 based on yesterday's closing prices.
The Food - Confectionery industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 27, which puts it in the top 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Hershey (HSY) Gains As Market Dips: What You Should Know
Hershey (HSY - Free Report) closed at $223.55 in the latest trading session, marking a +1.37% move from the prior day. This change outpaced the S&P 500's 0.75% loss on the day. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq lost 0.11%.
Prior to today's trading, shares of the chocolate bar and candy maker had lost 2.53% over the past month. This has was narrower than the Consumer Staples sector's loss of 8.38% and the S&P 500's loss of 8.4% in that time.
Investors will be hoping for strength from Hershey as it approaches its next earnings release, which is expected to be November 4, 2022. On that day, Hershey is projected to report earnings of $2.07 per share, which would represent a year-over-year decline of 1.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.61 billion, up 10.43% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.21 per share and revenue of $10.22 billion, which would represent changes of +14.35% and +13.86%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Hershey. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Hershey is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Hershey is holding a Forward P/E ratio of 26.86. This valuation marks a premium compared to its industry's average Forward P/E of 24.66.
Investors should also note that HSY has a PEG ratio of 3.5 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Food - Confectionery stocks are, on average, holding a PEG ratio of 3.5 based on yesterday's closing prices.
The Food - Confectionery industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 27, which puts it in the top 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.