In the latest market close, Hershey (HSY) reached $190.94, with a -0.33% movement compared to the previous day. This change was narrower than the S&P 500’s 1.26% loss on the day. On the other hand, the Dow registered a loss of 0.86%, and the technology-centric Nasdaq decreased by 1.54%.
The chocolate bar and candy maker’s stock has dropped by 7.96% in the past month, falling short of the Consumer Staples sector’s loss of 4.79% and the S&P 500’s loss of 3.67%.
The investment community will be closely monitoring the performance of Hershey in its forthcoming earnings report. The company is scheduled to release its earnings on October 26, 2023. On that day, Hershey is projected to report earnings of $2.47 per share, which would represent year-over-year growth of 13.82%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.97 billion, indicating a 9.01% increase compared to the same quarter of the previous year.
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. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there’s been a 0.14% fall in the Zacks Consensus EPS estimate. Hershey is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Hershey is presently trading at a Forward P/E ratio of 20.09. For comparison, its industry has an average Forward P/E of 20.09, which means Hershey is trading at no noticeable deviation to the group.
Investors should also note that HSY has a PEG ratio of 2.39 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. By the end of yesterday’s trading, the Food – Confectionery industry had an average PEG ratio of 2.39.
The Food – Confectionery industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 5, putting it in the top 2% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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 Company (The) (HSY) : Free Stock Analysis Report
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