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Hershey (HSY) Rings in Easter with a New Range of Products
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The Hershey Company (HSY - Free Report) announced a range of new products and classic treats for Easter. The company is also implementing a few innovations and introducing “spring-inspired packaging”.
The company is coming up with a number of egg-shaped products like ‘Hershey’s Kisses Carrot Cake Candies’ and ‘Milk Chocolate Covered Marshmallow Egg’ along with several Reese’s and Cadbury brand food items.
Hershey actively innovates its core brands to meet consumer demand. These efforts are expected to contribute 2–2.5% to sales in 2017.
Notably, the latest line of products is in line with the company’s strategy to create a unique and holistic portfolio for every season, which can meet consumers’ seasonal shopping needs like gifting and stocking stuffers during the holidays or basket filling and egg hunting during Easter.
The company expects this longer Easter season and planned innovation to boost the top line for Hershey, which has been facing troubles on the revenue front since 2014. Net sales growth of 3.9% in 2014 was below the company’s expectations of about 4.8%. Sales declined 0.5% in 2015, also below the company’s projections of in-line to slight growth. The top-line weakness continued in 2016 with sales increasing just 0.7%.
The company intends to implement a wide range of innovative and seasonal plans in 2017, which are expected to drive sales.
Share Price Movement
Hershey’s shares outperformed the Zacks categorized Food-Confectionary industry in the last one year. The company’s shares gained around 16.9% while the broader industry declined 8.4%. The company’s productivity improvements and cost-saving initiatives should drive the stock in the upcoming quarters as well.
Estimate Revisions
The company’s recent earnings estimates have been encouraging. The current quarter has seen two upward estimate revisions over in the past 60 days while the full-year estimates have seen seven upward revisions over the same time frame.
As a result, the current quarter consensus estimate has risen 2.4% in the past two months, while the full-year estimate has inched 3% higher, justifying the company’s Zacks Rank #2 (Buy).
Other Stocks to Consider
Other favorably ranked stocks in the consumer staples sector include ConAgra Foods, Inc. (CAG - Free Report) , J & J Snack Foods Corp. (JJSF - Free Report) and Castle Brands, Inc. .
ConAgra Foods’ fiscal 2017 earnings are expected to increase 16.3% while that for J & J Snack Foods are expected to grow 8.1%.
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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Hershey (HSY) Rings in Easter with a New Range of Products
The Hershey Company (HSY - Free Report) announced a range of new products and classic treats for Easter. The company is also implementing a few innovations and introducing “spring-inspired packaging”.
The company is coming up with a number of egg-shaped products like ‘Hershey’s Kisses Carrot Cake Candies’ and ‘Milk Chocolate Covered Marshmallow Egg’ along with several Reese’s and Cadbury brand food items.
Hershey actively innovates its core brands to meet consumer demand. These efforts are expected to contribute 2–2.5% to sales in 2017.
Notably, the latest line of products is in line with the company’s strategy to create a unique and holistic portfolio for every season, which can meet consumers’ seasonal shopping needs like gifting and stocking stuffers during the holidays or basket filling and egg hunting during Easter.
The company expects this longer Easter season and planned innovation to boost the top line for Hershey, which has been facing troubles on the revenue front since 2014. Net sales growth of 3.9% in 2014 was below the company’s expectations of about 4.8%. Sales declined 0.5% in 2015, also below the company’s projections of in-line to slight growth. The top-line weakness continued in 2016 with sales increasing just 0.7%.
The company intends to implement a wide range of innovative and seasonal plans in 2017, which are expected to drive sales.
Share Price Movement
Hershey’s shares outperformed the Zacks categorized Food-Confectionary industry in the last one year. The company’s shares gained around 16.9% while the broader industry declined 8.4%. The company’s productivity improvements and cost-saving initiatives should drive the stock in the upcoming quarters as well.
Estimate Revisions
The company’s recent earnings estimates have been encouraging. The current quarter has seen two upward estimate revisions over in the past 60 days while the full-year estimates have seen seven upward revisions over the same time frame.
As a result, the current quarter consensus estimate has risen 2.4% in the past two months, while the full-year estimate has inched 3% higher, justifying the company’s Zacks Rank #2 (Buy).
Other Stocks to Consider
Other favorably ranked stocks in the consumer staples sector include ConAgra Foods, Inc. (CAG - Free Report) , J & J Snack Foods Corp. (JJSF - Free Report) and Castle Brands, Inc. .
All the three companies carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ConAgra Foods’ fiscal 2017 earnings are expected to increase 16.3% while that for J & J Snack Foods are expected to grow 8.1%.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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