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Hershey (HSY) Outpaces Stock Market Gains: What You Should Know
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Hershey (HSY - Free Report) closed the most recent trading day at $259.60, moving +0.22% from the previous trading session. This change outpaced the S&P 500's 0.09% gain on the day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 2.51%.
Prior to today's trading, shares of the chocolate bar and candy maker had gained 5.93% over the past month. This has lagged the Consumer Staples sector's gain of 6.14% and the S&P 500's gain of 6.17% in that time.
Investors will be hoping for strength from Hershey as it approaches its next earnings release, which is expected to be April 27, 2023. In that report, analysts expect Hershey to post earnings of $2.67 per share. This would mark year-over-year growth of 5.53%. Meanwhile, our latest consensus estimate is calling for revenue of $2.9 billion, up 8.8% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.38 per share and revenue of $11.23 billion. These totals would mark changes of +10.09% and +7.76%, respectively, from last year.
Any recent changes to analyst estimates for Hershey should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. Hershey is currently a Zacks Rank #3 (Hold).
Investors should also note Hershey's current valuation metrics, including its Forward P/E ratio of 27.61. Its industry sports an average Forward P/E of 22.31, so we one might conclude that Hershey is trading at a premium comparatively.
Also, we should mention that HSY has a PEG ratio of 3.6. 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. The Food - Confectionery was holding an average PEG ratio of 3.6 at yesterday's closing price.
The Food - Confectionery industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 18% 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) Outpaces Stock Market Gains: What You Should Know
Hershey (HSY - Free Report) closed the most recent trading day at $259.60, moving +0.22% from the previous trading session. This change outpaced the S&P 500's 0.09% gain on the day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 2.51%.
Prior to today's trading, shares of the chocolate bar and candy maker had gained 5.93% over the past month. This has lagged the Consumer Staples sector's gain of 6.14% and the S&P 500's gain of 6.17% in that time.
Investors will be hoping for strength from Hershey as it approaches its next earnings release, which is expected to be April 27, 2023. In that report, analysts expect Hershey to post earnings of $2.67 per share. This would mark year-over-year growth of 5.53%. Meanwhile, our latest consensus estimate is calling for revenue of $2.9 billion, up 8.8% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.38 per share and revenue of $11.23 billion. These totals would mark changes of +10.09% and +7.76%, respectively, from last year.
Any recent changes to analyst estimates for Hershey should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. Hershey is currently a Zacks Rank #3 (Hold).
Investors should also note Hershey's current valuation metrics, including its Forward P/E ratio of 27.61. Its industry sports an average Forward P/E of 22.31, so we one might conclude that Hershey is trading at a premium comparatively.
Also, we should mention that HSY has a PEG ratio of 3.6. 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. The Food - Confectionery was holding an average PEG ratio of 3.6 at yesterday's closing price.
The Food - Confectionery industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 18% 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.