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Hershey (HSY) Laps the Stock Market: Here's Why

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In the latest close session, Hershey (HSY - Free Report) was up +1.15% at $191.60. This change outpaced the S&P 500's 0.4% gain on the day. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 0.66%.

The chocolate bar and candy maker's stock has dropped by 2.08% in the past month, exceeding the Consumer Staples sector's loss of 2.91% and lagging the S&P 500's gain of 1.02%.

The upcoming earnings release of Hershey will be of great interest to investors. The company's earnings report is expected on October 30, 2025. It is anticipated that the company will report an EPS of $1.07, marking a 54.27% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.11 billion, indicating a 4.12% increase compared to the same quarter of the previous year.

HSY's full-year Zacks Consensus Estimates are calling for earnings of $5.92 per share and revenue of $11.52 billion. These results would represent year-over-year changes of -36.82% and +2.8%, respectively.

It is also important to note the recent changes to analyst estimates for Hershey. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.04% rise in the Zacks Consensus EPS estimate. Currently, Hershey is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Hershey is presently being traded at a Forward P/E ratio of 32.03. This represents a premium compared to its industry average Forward P/E of 21.92.

Investors should also note that HSY has a PEG ratio of 4.58 right now. 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. The Food - Confectionery industry had an average PEG ratio of 3.49 as trading concluded yesterday.

The Food - Confectionery industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 213, finds itself in the bottom 14% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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