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Hershey (HSY) Stock Declines While Market Improves: Some Information for Investors
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Hershey (HSY - Free Report) closed the latest trading day at $192.52, indicating a -0.16% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 1.03% for the day. Meanwhile, the Dow experienced a rise of 0.34%, and the technology-dominated Nasdaq saw an increase of 1.51%.
Prior to today's trading, shares of the chocolate bar and candy maker had lost 0.74% over the past month. This has lagged the Consumer Staples sector's loss of 0.65% and the S&P 500's gain of 3.21% in that time.
The investment community will be paying close attention to the earnings performance of Hershey in its upcoming release. The company is forecasted to report an EPS of $2.72, showcasing an 8.11% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $3.12 billion, indicating a 4.34% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.63 per share and revenue of $11.47 billion, which would represent changes of +0.42% and +2.75%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Hershey. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 1.34% fall in the Zacks Consensus EPS estimate. As of now, Hershey holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Hershey has a Forward P/E ratio of 20.03 right now. This represents a premium compared to its industry's average Forward P/E of 19.18.
One should further note that HSY currently holds a PEG ratio of 2.95. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Food - Confectionery industry had an average PEG ratio of 2.5.
The Food - Confectionery industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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) Stock Declines While Market Improves: Some Information for Investors
Hershey (HSY - Free Report) closed the latest trading day at $192.52, indicating a -0.16% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 1.03% for the day. Meanwhile, the Dow experienced a rise of 0.34%, and the technology-dominated Nasdaq saw an increase of 1.51%.
Prior to today's trading, shares of the chocolate bar and candy maker had lost 0.74% over the past month. This has lagged the Consumer Staples sector's loss of 0.65% and the S&P 500's gain of 3.21% in that time.
The investment community will be paying close attention to the earnings performance of Hershey in its upcoming release. The company is forecasted to report an EPS of $2.72, showcasing an 8.11% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $3.12 billion, indicating a 4.34% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.63 per share and revenue of $11.47 billion, which would represent changes of +0.42% and +2.75%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Hershey. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 1.34% fall in the Zacks Consensus EPS estimate. As of now, Hershey holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Hershey has a Forward P/E ratio of 20.03 right now. This represents a premium compared to its industry's average Forward P/E of 19.18.
One should further note that HSY currently holds a PEG ratio of 2.95. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Food - Confectionery industry had an average PEG ratio of 2.5.
The Food - Confectionery industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.