Based in Hershey, Pennsylvania, The Hershey Company (HSY) is a prominent leader in the global confectionery industry. With a market cap of $40.34 billion, it is known for its iconic chocolate products. Hershey offers a diverse range of snacks, including candy, mints, and gum, catering to individual consumers and large retailers worldwide.
HSY's shares have underperformed the broader market over the past 52 weeks. HSY has declined by 10.8% over this time frame, while the broader S&P 500 Index ($SPX) rallied 21.7%. In 2024, HSY is up 7% compared to SPX's 13.9% gains on a YTD basis.
Zooming in further, the confectionary giant has underperformed the Consumer Staples Select Sector SPDR Fund (XLP) on a YTD basis. The exchange-traded fund has delivered 9.8% returns over this period.
On Aug. 1, HSY shares gained over 1% after reporting Q2 results with revenue and earnings of $2.07 billion and $1.27, missing analysts' expectations of $2.30 billion and $1.44, respectively. The company expects full-year earnings between $9.49 to $9.59 per share.
For the current fiscal year, ending in December, analysts expect HSY’s EPS to decline marginally to $9.50 on a diluted basis. The company’s earnings surprise history is mixed. It surpassed the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 21 analysts covering HSY stock, the consensus rating is a “Moderate Buy,” compared to “Hold” three months ago. That’s based on five “Strong Buy” ratings and 16 “Holds.”
The mean price target of $204.35 represents a 2.5% premium to HSY’s current price levels. The Street-high price target of $236 suggests an upside potential of 18.3%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
