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Here's How Much a $1000 Investment in Hershey Made 10 Years Ago Would Be Worth Today

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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

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

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Hershey, if you bought shares a decade ago, you're likely feeling really good about your investment today.

According to our calculations, a $1000 investment made in February 2013 would be worth $2,952.85, or a gain of 195.28%, as of February 23, 2023, and this return excludes dividends but includes price increases.

In comparison, the S&P 500 gained 163.33% and the price of gold went up 10.91% 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.

The stock is up 8.54% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 8 higher, for fiscal 2023. The consensus estimate has moved up as well.

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