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Hershey (HSY) Stock Sinks As Market Gains: What You Should Know
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Hershey (HSY - Free Report) closed at $248.68 in the latest trading session, marking a -0.36% move from the prior day. This change lagged the S&P 500's daily gain of 0.45%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 1.99%.
Prior to today's trading, shares of the chocolate bar and candy maker had lost 3.89% over the past month. This has lagged the Consumer Staples sector's gain of 1.27% and the S&P 500's gain of 4.25% in that time.
Hershey will be looking to display strength as it nears its next earnings release. On that day, Hershey is projected to report earnings of $1.90 per share, which would represent year-over-year growth of 5.56%. Our most recent consensus estimate is calling for quarterly revenue of $2.53 billion, up 6.5% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.49 per share and revenue of $11.29 billion. These totals would mark changes of +11.38% and +8.39%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Hershey. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Hershey is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Hershey's current valuation metrics, including its Forward P/E ratio of 26.29. Its industry sports an average Forward P/E of 22.88, so we one might conclude that Hershey is trading at a premium comparatively.
Meanwhile, HSY's PEG ratio is currently 3.43. 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. Food - Confectionery stocks are, on average, holding a PEG ratio of 3.43 based on yesterday's closing prices.
The Food - Confectionery industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
To follow HSY in the coming trading sessions, be sure to utilize Zacks.com.
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Hershey (HSY) Stock Sinks As Market Gains: What You Should Know
Hershey (HSY - Free Report) closed at $248.68 in the latest trading session, marking a -0.36% move from the prior day. This change lagged the S&P 500's daily gain of 0.45%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 1.99%.
Prior to today's trading, shares of the chocolate bar and candy maker had lost 3.89% over the past month. This has lagged the Consumer Staples sector's gain of 1.27% and the S&P 500's gain of 4.25% in that time.
Hershey will be looking to display strength as it nears its next earnings release. On that day, Hershey is projected to report earnings of $1.90 per share, which would represent year-over-year growth of 5.56%. Our most recent consensus estimate is calling for quarterly revenue of $2.53 billion, up 6.5% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.49 per share and revenue of $11.29 billion. These totals would mark changes of +11.38% and +8.39%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Hershey. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Hershey is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Hershey's current valuation metrics, including its Forward P/E ratio of 26.29. Its industry sports an average Forward P/E of 22.88, so we one might conclude that Hershey is trading at a premium comparatively.
Meanwhile, HSY's PEG ratio is currently 3.43. 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. Food - Confectionery stocks are, on average, holding a PEG ratio of 3.43 based on yesterday's closing prices.
The Food - Confectionery industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
To follow HSY in the coming trading sessions, be sure to utilize Zacks.com.