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Hershey (HSY) Declines More Than Market: Some Information for Investors

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Hershey (HSY - Free Report) closed at $184.20 in the latest trading session, marking a -1.04% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.53%. Meanwhile, the Dow experienced a drop of 0.71%, and the technology-dominated Nasdaq saw a decrease of 0.93%.

The chocolate bar and candy maker's shares have seen a decrease of 2.42% over the last month, not keeping up with the Consumer Staples sector's loss of 0.61% and the S&P 500's gain of 1.13%.

The investment community will be paying close attention to the earnings performance of Hershey in its upcoming release. The company is slated to reveal its earnings on October 30, 2025. On that day, Hershey is projected to report earnings of $1.08 per share, which would represent a year-over-year decline of 53.85%. Our most recent consensus estimate is calling for quarterly revenue of $3.12 billion, up 4.27% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.93 per share and a revenue of $11.51 billion, representing changes of -36.71% and +2.78%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Hershey. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.34% higher. As of now, Hershey holds a Zacks Rank of #3 (Hold).

In terms of valuation, Hershey is presently being traded at a Forward P/E ratio of 31.37. This signifies a premium in comparison to the average Forward P/E of 21.96 for its industry.

We can additionally observe that HSY currently boasts a PEG ratio of 4.48. 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. Food - Confectionery stocks are, on average, holding a PEG ratio of 3.51 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 210, putting it in the bottom 15% 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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