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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 $260.59, moving +1.11% from the previous trading session. This change outpaced the S&P 500's 0.08% gain on the day. Elsewhere, the Dow lost 0.68%, while the tech-heavy Nasdaq lost 0.61%.
Prior to today's trading, shares of the chocolate bar and candy maker had lost 4.27% over the past month. This has lagged the Consumer Staples sector's loss of 3.71% and the S&P 500's gain of 6.1% in that time.
Investors will be hoping for strength from Hershey as it approaches its next earnings release. The company is expected to report EPS of $1.90, up 5.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.53 billion, up 6.78% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.49 per share and revenue of $11.29 billion, which would represent changes of +11.38% and +8.4%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Hershey. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Hershey is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Hershey is holding a Forward P/E ratio of 27.15. For comparison, its industry has an average Forward P/E of 23.5, which means Hershey is trading at a premium to the group.
We can also see that HSY currently has a PEG ratio of 3.54. 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. HSY's industry had an average PEG ratio of 3.54 as of yesterday's close.
The Food - Confectionery industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 48, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow HSY in the coming trading sessions, be sure to utilize 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 $260.59, moving +1.11% from the previous trading session. This change outpaced the S&P 500's 0.08% gain on the day. Elsewhere, the Dow lost 0.68%, while the tech-heavy Nasdaq lost 0.61%.
Prior to today's trading, shares of the chocolate bar and candy maker had lost 4.27% over the past month. This has lagged the Consumer Staples sector's loss of 3.71% and the S&P 500's gain of 6.1% in that time.
Investors will be hoping for strength from Hershey as it approaches its next earnings release. The company is expected to report EPS of $1.90, up 5.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.53 billion, up 6.78% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.49 per share and revenue of $11.29 billion, which would represent changes of +11.38% and +8.4%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Hershey. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Hershey is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Hershey is holding a Forward P/E ratio of 27.15. For comparison, its industry has an average Forward P/E of 23.5, which means Hershey is trading at a premium to the group.
We can also see that HSY currently has a PEG ratio of 3.54. 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. HSY's industry had an average PEG ratio of 3.54 as of yesterday's close.
The Food - Confectionery industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 48, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow HSY in the coming trading sessions, be sure to utilize Zacks.com.