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If You Invested $1000 in Hershey 10 Years Ago, This Is How Much You'd Have Now
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Hershey (HSY - Free Report) ten years ago? It may not have been easy to hold on to HSY for all that time, but if you did, how much would your investment be worth today?
Hershey's Business In-Depth
With that in mind, let's take a look at Hershey's main business drivers.
Founded in 1894 and based in Hershey, PA, The Hershey Company (HSY - Free Report) , is the largest chocolate manufacturer in North America as well as a global leader in chocolate and non-chocolate confectionery. In addition, Hershey manufactures pantry items like baking ingredients, toppings and beverages; and gum and mint refreshment products; snack bites and mixes, as well as spreads.
Since Dec 31, 2014, Hershey reported its operations through two segments, namely, North America, and International and Other. Following the completion of the Dot's and Pretzels buyouts in December 2021, management planned to begin reporting the operations in three reportable segments. Hence, Hershey realigned its former two segments into three reportable segments during the fourth quarter of 2021. These segments are North America Confectionery, North America Salty Snacks and International.
North America Confectionery (81.9% of total net sales in Q3): The segment will take care of chocolate and nonchocolate confectionery market position in the United States and Canada. The unit includes business in chocolate and nonchocolate confectionery, gum and refreshment products, protein bars, spreads, snack bites and mixes, as well as pantry and food service lines. Apart from this, it includes retail operations in several locations.
North America Salty Snacks (10.1% of total net sales in Q3): The segment is responsible for salty snacking products in the United States. The business includes ready-to-eat popcorn, baked and trans-fat free snacks, pretzels as well as other snacks.
International (8% of total net sales in Q3): The unit is a combination of all other operating segments (not individually material). Under the unit, it operates and manufactures products across Mexico, Brazil, India and Malaysia. It also distributes and sells confectionery products in export markets across Asia, Latin America, Middle East, Europe, Africa and other regions.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Hershey, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in December 2012 would be worth $3,339.01, or a 233.90% gain, as of December 9, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 179.50% and gold's return of 0.79% over the same time frame.
Analysts are forecasting more upside for HSY too.
Hershey’s shares have lagged the industry in the past three months. The company is battling the adverse impact of broad-based cost inflation, which continued in the third quarter of 2022. Its adjusted gross margin contracted 180 basis points (bps) due to raw material, packaging and logistics inflation and labor investments. Management expects the operating environment to remain dynamic in 2023 with high single-digit cost inflation for commodities, packaging, logistics, wages and other general operating expenses. Nevertheless, Hershey’s is undertaking strategic pricing initiatives to mitigate rising costs. Its third-quarter earnings and net sales surpassed the Zacks Consensus Estimate and rose year over year. Results gained from higher brand investments and enhanced supply chain. Gains from strategic buyouts contributed to the upside.
The stock is up 6.63% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 7 higher, for fiscal 2022. The consensus estimate has moved up as well.
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If You Invested $1000 in Hershey 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Hershey (HSY - Free Report) ten years ago? It may not have been easy to hold on to HSY for all that time, but if you did, how much would your investment be worth today?
Hershey's Business In-Depth
With that in mind, let's take a look at Hershey's main business drivers.
Founded in 1894 and based in Hershey, PA, The Hershey Company (HSY - Free Report) , is the largest chocolate manufacturer in North America as well as a global leader in chocolate and non-chocolate confectionery. In addition, Hershey manufactures pantry items like baking ingredients, toppings and beverages; and gum and mint refreshment products; snack bites and mixes, as well as spreads.
Since Dec 31, 2014, Hershey reported its operations through two segments, namely, North America, and International and Other. Following the completion of the Dot's and Pretzels buyouts in December 2021, management planned to begin reporting the operations in three reportable segments. Hence, Hershey realigned its former two segments into three reportable segments during the fourth quarter of 2021. These segments are North America Confectionery, North America Salty Snacks and International.
North America Confectionery (81.9% of total net sales in Q3): The segment will take care of chocolate and nonchocolate confectionery market position in the United States and Canada. The unit includes business in chocolate and nonchocolate confectionery, gum and refreshment products, protein bars, spreads, snack bites and mixes, as well as pantry and food service lines. Apart from this, it includes retail operations in several locations.
North America Salty Snacks (10.1% of total net sales in Q3): The segment is responsible for salty snacking products in the United States. The business includes ready-to-eat popcorn, baked and trans-fat free snacks, pretzels as well as other snacks.
International (8% of total net sales in Q3): The unit is a combination of all other operating segments (not individually material). Under the unit, it operates and manufactures products across Mexico, Brazil, India and Malaysia. It also distributes and sells confectionery products in export markets across Asia, Latin America, Middle East, Europe, Africa and other regions.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Hershey, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in December 2012 would be worth $3,339.01, or a 233.90% gain, as of December 9, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 179.50% and gold's return of 0.79% over the same time frame.
Analysts are forecasting more upside for HSY too.
Hershey’s shares have lagged the industry in the past three months. The company is battling the adverse impact of broad-based cost inflation, which continued in the third quarter of 2022. Its adjusted gross margin contracted 180 basis points (bps) due to raw material, packaging and logistics inflation and labor investments. Management expects the operating environment to remain dynamic in 2023 with high single-digit cost inflation for commodities, packaging, logistics, wages and other general operating expenses. Nevertheless, Hershey’s is undertaking strategic pricing initiatives to mitigate rising costs. Its third-quarter earnings and net sales surpassed the Zacks Consensus Estimate and rose year over year. Results gained from higher brand investments and enhanced supply chain. Gains from strategic buyouts contributed to the upside.
The stock is up 6.63% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 7 higher, for fiscal 2022. The consensus estimate has moved up as well.