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Hershey (HSY) Stock Drops Despite Market Gains: Important Facts to Note
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Hershey (HSY - Free Report) closed the latest trading day at $193.34, indicating a -0.92% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.25%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.56%.
The chocolate bar and candy maker's shares have seen a decrease of 0.65% over the last month, not keeping up with the Consumer Staples sector's gain of 1.17% and the S&P 500's gain of 1.65%.
The upcoming earnings release of Hershey will be of great interest to investors. The company is forecasted to report an EPS of $2.74, showcasing a 5.38% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $3.1 billion, up 2.41% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.49 per share and revenue of $11.35 billion, which would represent changes of -1.04% and +1.63%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Hershey. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 0.12% lower. Hershey is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Hershey is holding a Forward P/E ratio of 20.56. For comparison, its industry has an average Forward P/E of 19.11, which means Hershey is trading at a premium to the group.
It is also worth noting that HSY currently has a PEG ratio of 5.67. 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 3.9 based on yesterday's closing prices.
The Food - Confectionery industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 212, putting it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) Stock Drops Despite Market Gains: Important Facts to Note
Hershey (HSY - Free Report) closed the latest trading day at $193.34, indicating a -0.92% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.25%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.56%.
The chocolate bar and candy maker's shares have seen a decrease of 0.65% over the last month, not keeping up with the Consumer Staples sector's gain of 1.17% and the S&P 500's gain of 1.65%.
The upcoming earnings release of Hershey will be of great interest to investors. The company is forecasted to report an EPS of $2.74, showcasing a 5.38% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $3.1 billion, up 2.41% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.49 per share and revenue of $11.35 billion, which would represent changes of -1.04% and +1.63%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Hershey. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 0.12% lower. Hershey is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Hershey is holding a Forward P/E ratio of 20.56. For comparison, its industry has an average Forward P/E of 19.11, which means Hershey is trading at a premium to the group.
It is also worth noting that HSY currently has a PEG ratio of 5.67. 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 3.9 based on yesterday's closing prices.
The Food - Confectionery industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 212, putting it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.