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Hershey (HSY) Gains But Lags Market: What You Should Know
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Hershey (HSY - Free Report) closed the most recent trading day at $228.22, moving +1.55% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.37%. Meanwhile, the Dow gained 2.47%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Heading into today, shares of the chocolate bar and candy maker had lost 0.35% over the past month, outpacing the Consumer Staples sector's loss of 5.5% and the S&P 500's loss of 4.82% in that time.
Hershey will be looking to display strength as it nears its next earnings release, which is expected to be November 4, 2022. The company is expected to report EPS of $2.06, down 1.9% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.61 billion, up 10.44% from the year-ago period.
HSY's full-year Zacks Consensus Estimates are calling for earnings of $8.20 per share and revenue of $10.21 billion. These results would represent year-over-year changes of +14.21% and +13.85%, respectively.
It is also important to note the recent changes to analyst estimates for Hershey. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. Hershey currently has a Zacks Rank of #3 (Hold).
Investors should also note Hershey's current valuation metrics, including its Forward P/E ratio of 27.4. This represents a premium compared to its industry's average Forward P/E of 25.71.
Meanwhile, HSY's PEG ratio is currently 3.57. 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. The Food - Confectionery industry currently had an average PEG ratio of 3.57 as of yesterday's close.
The Food - Confectionery industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 23% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Hershey (HSY) Gains But Lags Market: What You Should Know
Hershey (HSY - Free Report) closed the most recent trading day at $228.22, moving +1.55% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.37%. Meanwhile, the Dow gained 2.47%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Heading into today, shares of the chocolate bar and candy maker had lost 0.35% over the past month, outpacing the Consumer Staples sector's loss of 5.5% and the S&P 500's loss of 4.82% in that time.
Hershey will be looking to display strength as it nears its next earnings release, which is expected to be November 4, 2022. The company is expected to report EPS of $2.06, down 1.9% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.61 billion, up 10.44% from the year-ago period.
HSY's full-year Zacks Consensus Estimates are calling for earnings of $8.20 per share and revenue of $10.21 billion. These results would represent year-over-year changes of +14.21% and +13.85%, respectively.
It is also important to note the recent changes to analyst estimates for Hershey. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. Hershey currently has a Zacks Rank of #3 (Hold).
Investors should also note Hershey's current valuation metrics, including its Forward P/E ratio of 27.4. This represents a premium compared to its industry's average Forward P/E of 25.71.
Meanwhile, HSY's PEG ratio is currently 3.57. 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. The Food - Confectionery industry currently had an average PEG ratio of 3.57 as of yesterday's close.
The Food - Confectionery industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 23% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.