Hershey (HSY) closed the latest trading day at $190.86, indicating a +1.71% change from the previous session’s end. This move outpaced the S&P 500’s daily loss of 0.5%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 1.23%.
Shares of the chocolate bar and candy maker have depreciated by 11.4% over the course of the past month, underperforming the Consumer Staples sector’s loss of 6.27% and the S&P 500’s loss of 2.4%.
Analysts and investors alike will be keeping a close eye on the performance of Hershey in its upcoming earnings disclosure. The company’s earnings report is set to go public on October 26, 2023. The company’s upcoming EPS is projected at $2.48, signifying a 14.29% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.98 billion, up 9.18% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.54 per share and a revenue of $11.26 billion, indicating changes of +11.97% and +8.09%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Hershey. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.13% downward. As of now, Hershey holds a Zacks Rank of #3 (Hold).
Looking at valuation, Hershey is presently trading at a Forward P/E ratio of 19.67. Its industry sports an average Forward P/E of 19.67, so one might conclude that Hershey is trading at no noticeable deviation comparatively.
We can also see that HSY currently has a PEG ratio of 2.3. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. HSY’s industry had an average PEG ratio of 2.3 as of yesterday’s close.
The Food – Confectionery industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 4, placing it within the top 2% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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