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Hershey (HSY) Stock Sinks As Market Gains: What You Should Know
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In the latest market close, Hershey (HSY - Free Report) reached $186.21, with a -1.37% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.27% for the day. Elsewhere, the Dow saw an upswing of 0.43%, while the tech-heavy Nasdaq appreciated by 0.19%.
Shares of the chocolate bar and candy maker witnessed a loss of 3.54% over the previous month, trailing the performance of the Consumer Staples sector with its gain of 4.85% and the S&P 500's gain of 6.94%.
Market participants will be closely following the financial results of Hershey in its upcoming release. In that report, analysts expect Hershey to post earnings of $1.97 per share. This would mark a year-over-year decline of 2.48%. Meanwhile, our latest consensus estimate is calling for revenue of $2.74 billion, up 3.43% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.53 per share and a revenue of $11.25 billion, representing changes of +11.85% and +8%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Hershey. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% decrease. Hershey is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Hershey is at present trading with a Forward P/E ratio of 19.8. This represents a discount compared to its industry's average Forward P/E of 21.36.
It is also worth noting that HSY currently has a PEG ratio of 2.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Food - Confectionery industry was having an average PEG ratio of 2.52.
The Food - Confectionery industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 92, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Hershey (HSY) Stock Sinks As Market Gains: What You Should Know
In the latest market close, Hershey (HSY - Free Report) reached $186.21, with a -1.37% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.27% for the day. Elsewhere, the Dow saw an upswing of 0.43%, while the tech-heavy Nasdaq appreciated by 0.19%.
Shares of the chocolate bar and candy maker witnessed a loss of 3.54% over the previous month, trailing the performance of the Consumer Staples sector with its gain of 4.85% and the S&P 500's gain of 6.94%.
Market participants will be closely following the financial results of Hershey in its upcoming release. In that report, analysts expect Hershey to post earnings of $1.97 per share. This would mark a year-over-year decline of 2.48%. Meanwhile, our latest consensus estimate is calling for revenue of $2.74 billion, up 3.43% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.53 per share and a revenue of $11.25 billion, representing changes of +11.85% and +8%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Hershey. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% decrease. Hershey is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Hershey is at present trading with a Forward P/E ratio of 19.8. This represents a discount compared to its industry's average Forward P/E of 21.36.
It is also worth noting that HSY currently has a PEG ratio of 2.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Food - Confectionery industry was having an average PEG ratio of 2.52.
The Food - Confectionery industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 92, finds itself in the top 37% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.