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Here's How Much You'd Have If You Invested $1000 in Hershey a Decade Ago
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Hershey (HSY - Free Report) ten years ago? It may not have been easy to hold on to HSY for all that time, but if you did, how much would your investment be worth today?
Hershey's Business In-Depth
With that in mind, let's take a look at Hershey's main business drivers.
Founded in 1894 and based in Hershey, PA, The Hershey Company (HSY - Free Report) , is the largest chocolate manufacturer in North America as well as a global leader in chocolate and non-chocolate confectionery. In addition, Hershey manufactures pantry items like baking ingredients, toppings and beverages; and gum and mint refreshment products; snack bites and mixes, as well as spreads.
Since Dec 31, 2014, Hershey reported its operations through two segments, namely, North America, and International and Other. Following the completion of the Dot's and Pretzels buyouts in December 2021, management planned to begin reporting the operations in three reportable segments. Hence, Hershey realigned its former two segments into three reportable segments during the fourth quarter of 2021. These segments are North America Confectionery, North America Salty Snacks and International.
North America Confectionery (82% of total net sales in Q4): The segment will take care of chocolate and nonchocolate confectionery market position in the United States and Canada. The unit includes business in chocolate and nonchocolate confectionery, gum and refreshment products, protein bars, spreads, snack bites and mixes, as well as pantry and food service lines. Apart from this, it includes retail operations in several locations.
North America Salty Snacks (10.3% of total net sales in Q4): The segment is responsible for salty snacking products in the United States. The business includes ready-to-eat popcorn, baked and trans-fat free snacks, pretzels as well as other snacks.
International (77% of total net sales in Q4): The unit is a combination of all other operating segments (not individually material). Under the unit, it operates and manufactures products across Mexico, Brazil, India and Malaysia. It also distributes and sells confectionery products in export markets across Asia, Latin America, Middle East, Europe, Africa and other regions.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Hershey ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in February 2013 would be worth $2,993.53, or a gain of 199.35%, as of February 7, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 171.88% and gold's return of 7.40% over the same time frame.
Analysts are anticipating more upside for HSY.
Hershey’s shares have outpaced the industry in the past three months. The company is undertaking buyouts to augment portfolio strength and boost revenues. This was seen in fourth-quarter 2022, wherein buyouts of Pretzels and Dot's boosted net sales by 3.6 point. The top and the bottom line surpassed the Zacks Consensus Estimate and rose year over year. Results gained from improved net price realization and higher consumer demand. Its performance remained strong even amid elevated inflation, supply-chain hurdles and macroeconomic volatility. Management remains optimistic about generating earnings and sales growth in 2023. Favorable net price realization and greater levels of productivity are likely to keep offsetting persistent rise in costs during 2023. It remains committed to investing in its brand portfolio and capacity expansion.
Over the past four weeks, shares have rallied 6.72%, and there have been 8 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Hershey a Decade Ago
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Hershey (HSY - Free Report) ten years ago? It may not have been easy to hold on to HSY for all that time, but if you did, how much would your investment be worth today?
Hershey's Business In-Depth
With that in mind, let's take a look at Hershey's main business drivers.
Founded in 1894 and based in Hershey, PA, The Hershey Company (HSY - Free Report) , is the largest chocolate manufacturer in North America as well as a global leader in chocolate and non-chocolate confectionery. In addition, Hershey manufactures pantry items like baking ingredients, toppings and beverages; and gum and mint refreshment products; snack bites and mixes, as well as spreads.
Since Dec 31, 2014, Hershey reported its operations through two segments, namely, North America, and International and Other. Following the completion of the Dot's and Pretzels buyouts in December 2021, management planned to begin reporting the operations in three reportable segments. Hence, Hershey realigned its former two segments into three reportable segments during the fourth quarter of 2021. These segments are North America Confectionery, North America Salty Snacks and International.
North America Confectionery (82% of total net sales in Q4): The segment will take care of chocolate and nonchocolate confectionery market position in the United States and Canada. The unit includes business in chocolate and nonchocolate confectionery, gum and refreshment products, protein bars, spreads, snack bites and mixes, as well as pantry and food service lines. Apart from this, it includes retail operations in several locations.
North America Salty Snacks (10.3% of total net sales in Q4): The segment is responsible for salty snacking products in the United States. The business includes ready-to-eat popcorn, baked and trans-fat free snacks, pretzels as well as other snacks.
International (77% of total net sales in Q4): The unit is a combination of all other operating segments (not individually material). Under the unit, it operates and manufactures products across Mexico, Brazil, India and Malaysia. It also distributes and sells confectionery products in export markets across Asia, Latin America, Middle East, Europe, Africa and other regions.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Hershey ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in February 2013 would be worth $2,993.53, or a gain of 199.35%, as of February 7, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 171.88% and gold's return of 7.40% over the same time frame.
Analysts are anticipating more upside for HSY.
Hershey’s shares have outpaced the industry in the past three months. The company is undertaking buyouts to augment portfolio strength and boost revenues. This was seen in fourth-quarter 2022, wherein buyouts of Pretzels and Dot's boosted net sales by 3.6 point. The top and the bottom line surpassed the Zacks Consensus Estimate and rose year over year. Results gained from improved net price realization and higher consumer demand. Its performance remained strong even amid elevated inflation, supply-chain hurdles and macroeconomic volatility. Management remains optimistic about generating earnings and sales growth in 2023. Favorable net price realization and greater levels of productivity are likely to keep offsetting persistent rise in costs during 2023. It remains committed to investing in its brand portfolio and capacity expansion.
Over the past four weeks, shares have rallied 6.72%, and there have been 8 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.