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Hershey (HSY) Increases Yet Falls Behind Market: What Investors Need to Know
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In the latest market close, Hershey (HSY - Free Report) reached $187.58, with a +0.03% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.97%. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 1.45%.
The chocolate bar and candy maker's stock has dropped by 7.73% in the past month, falling short of the Consumer Staples sector's loss of 3.52% and the S&P 500's gain of 5.41%.
The upcoming earnings release of Hershey will be of great interest to investors. The company is forecasted to report an EPS of $2.71, showcasing a 4.23% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $3.1 billion, indicating a 2.41% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.47 per share and a revenue of $11.32 billion, signifying shifts of -1.25% and +1.38%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Hershey. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.36% decrease. As of now, Hershey holds a Zacks Rank of #4 (Sell).
From a valuation perspective, Hershey is currently exchanging hands at a Forward P/E ratio of 19.81. For comparison, its industry has an average Forward P/E of 18.64, which means Hershey is trading at a premium to the group.
Meanwhile, HSY's PEG ratio is currently 5.46. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Food - Confectionery industry stood at 3.8 at the close of the market yesterday.
The Food - Confectionery industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 103, placing it within the top 41% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Hershey (HSY) Increases Yet Falls Behind Market: What Investors Need to Know
In the latest market close, Hershey (HSY - Free Report) reached $187.58, with a +0.03% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.97%. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 1.45%.
The chocolate bar and candy maker's stock has dropped by 7.73% in the past month, falling short of the Consumer Staples sector's loss of 3.52% and the S&P 500's gain of 5.41%.
The upcoming earnings release of Hershey will be of great interest to investors. The company is forecasted to report an EPS of $2.71, showcasing a 4.23% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $3.1 billion, indicating a 2.41% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.47 per share and a revenue of $11.32 billion, signifying shifts of -1.25% and +1.38%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Hershey. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.36% decrease. As of now, Hershey holds a Zacks Rank of #4 (Sell).
From a valuation perspective, Hershey is currently exchanging hands at a Forward P/E ratio of 19.81. For comparison, its industry has an average Forward P/E of 18.64, which means Hershey is trading at a premium to the group.
Meanwhile, HSY's PEG ratio is currently 5.46. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Food - Confectionery industry stood at 3.8 at the close of the market yesterday.
The Food - Confectionery industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 103, placing it within the top 41% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.