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Here's Why Hershey (HSY) Gained But Lagged the Market Today
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The latest trading session saw Hershey (HSY - Free Report) ending at $191.29, denoting a +0.07% adjustment from its last day's close. This change lagged the S&P 500's 1.08% gain on the day. Meanwhile, the Dow gained 0.32%, and the Nasdaq, a tech-heavy index, added 1.58%.
Shares of the chocolate bar and candy maker have appreciated by 4.98% over the course of the past month, outperforming the Consumer Staples sector's gain of 1.82% and the S&P 500's gain of 0.43%.
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 August 1, 2024. The company is predicted to post an EPS of $1.44, indicating a 28.36% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.31 billion, indicating a 7.09% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.59 per share and revenue of $11.44 billion, which would represent changes of 0% and +2.43%, respectively, from the prior year.
Any recent changes to analyst estimates for Hershey should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.1% fall in the Zacks Consensus EPS estimate. Currently, Hershey is carrying a Zacks Rank of #4 (Sell).
With respect to valuation, Hershey is currently being traded at a Forward P/E ratio of 19.93. This represents a premium compared to its industry's average Forward P/E of 19.85.
Also, we should mention that HSY has a PEG ratio of 4.28. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Food - Confectionery stocks are, on average, holding a PEG ratio of 3.33 based on yesterday's closing prices.
The Food - Confectionery industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 221, placing it within the bottom 13% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Here's Why Hershey (HSY) Gained But Lagged the Market Today
The latest trading session saw Hershey (HSY - Free Report) ending at $191.29, denoting a +0.07% adjustment from its last day's close. This change lagged the S&P 500's 1.08% gain on the day. Meanwhile, the Dow gained 0.32%, and the Nasdaq, a tech-heavy index, added 1.58%.
Shares of the chocolate bar and candy maker have appreciated by 4.98% over the course of the past month, outperforming the Consumer Staples sector's gain of 1.82% and the S&P 500's gain of 0.43%.
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 August 1, 2024. The company is predicted to post an EPS of $1.44, indicating a 28.36% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.31 billion, indicating a 7.09% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.59 per share and revenue of $11.44 billion, which would represent changes of 0% and +2.43%, respectively, from the prior year.
Any recent changes to analyst estimates for Hershey should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.1% fall in the Zacks Consensus EPS estimate. Currently, Hershey is carrying a Zacks Rank of #4 (Sell).
With respect to valuation, Hershey is currently being traded at a Forward P/E ratio of 19.93. This represents a premium compared to its industry's average Forward P/E of 19.85.
Also, we should mention that HSY has a PEG ratio of 4.28. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Food - Confectionery stocks are, on average, holding a PEG ratio of 3.33 based on yesterday's closing prices.
The Food - Confectionery industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 221, placing it within the bottom 13% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.