Why the Market Dipped But Hershey (HSY) Gained Today

Hershey (HSY) closed at $171.76 in the latest trading session, marking a +0.93% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 1.11% for the day. On the other hand, the Dow registered a loss of 0.77%, and the technology-centric Nasdaq decreased by 1.49%.The chocolate bar and candy maker's stock has dropped by 2.25% in the past month, exceeding the Consumer Staples sector's loss of 4.46% and lagging the S&P 500's gain of 0.4%.The investment community will be paying close attention to the earnings performance of Hershey in its upcoming release. The company is forecasted to report an EPS of $2.38, showcasing a 17.82% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.86 billion, up 7.55% from the year-ago period.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.06 per share and a revenue of $11.17 billion, indicating changes of -5.53% and +0.07%, respectively, from the former year.It is also important to note the recent changes to analyst estimates for Hershey. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 moved 0.01% lower. As of now, Hershey holds a Zacks Rank of #5 (Strong Sell).From a valuation perspective, Hershey is currently exchanging hands at a Forward P/E ratio of 18.78. Its industry sports an average Forward P/E of 19.68, so one might conclude that Hershey is trading at a discount comparatively.One should further note that HSY currently holds a PEG ratio of 4.08. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Food - Confectionery was holding an average PEG ratio of 3.64 at yesterday's closing price.The Food - Confectionery industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 234, which puts it in the bottom 7% of all 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.Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hershey Company (The) (HSY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks