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If You Invested $1000 in Hershey a Decade Ago, This is How Much It'd Be Worth Now
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as 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 (82.1% of total net sales in Q1): 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 (9% of total net sales in Q1): 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 (8.9% of total net sales in Q1): 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
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Hershey ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in May 2013 would be worth $3,061.75, or a 206.17% gain, as of May 4, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 153.39% and the price of gold went up 33.09% over the same time frame.
Going forward, analysts are expecting more upside for HSY.
Hershey’s shares have outperformed the industry in the past three months. The company has been benefiting from improved net price realization and higher consumer demand. This was seen in the first quarter of 2023, with the top and the bottom line surpassing the Zacks Consensus Estimate and increasing year over year. Management recently raised its net sales and earnings view to the high end of its earlier guidance. The company has been undertaking buyouts to augment portfolio strength and boost revenues. Management is focused on enhancing its network to optimize output, margin, utilization rates and service levels. That being said, it is grappling with higher selling, marketing and administrative expenses, which continued in the first quarter. Owing to HSY’s solid international presence, it remains exposed to unfavorable currency rates.
The stock has jumped 5.70% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 7 higher, for fiscal 2023; the consensus estimate has moved up as well.
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If You Invested $1000 in Hershey a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as 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 (82.1% of total net sales in Q1): 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 (9% of total net sales in Q1): 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 (8.9% of total net sales in Q1): 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
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Hershey ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in May 2013 would be worth $3,061.75, or a 206.17% gain, as of May 4, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 153.39% and the price of gold went up 33.09% over the same time frame.
Going forward, analysts are expecting more upside for HSY.
Hershey’s shares have outperformed the industry in the past three months. The company has been benefiting from improved net price realization and higher consumer demand. This was seen in the first quarter of 2023, with the top and the bottom line surpassing the Zacks Consensus Estimate and increasing year over year. Management recently raised its net sales and earnings view to the high end of its earlier guidance. The company has been undertaking buyouts to augment portfolio strength and boost revenues. Management is focused on enhancing its network to optimize output, margin, utilization rates and service levels. That being said, it is grappling with higher selling, marketing and administrative expenses, which continued in the first quarter. Owing to HSY’s solid international presence, it remains exposed to unfavorable currency rates.
The stock has jumped 5.70% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 7 higher, for fiscal 2023; the consensus estimate has moved up as well.