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Hershey (HSY) Gains But Lags Market: What You Should Know

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Hershey (HSY - Free Report) ended the recent trading session at $186, demonstrating a +0.01% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.77% for the day. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq gained 0.87%.

The the stock of chocolate bar and candy maker has fallen by 7.39% in the past month, lagging the Consumer Staples sector's loss of 1.9% and the S&P 500's gain of 4.87%.

Investors will be eagerly watching for the performance of Hershey in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 7, 2024. The company is expected to report EPS of $2.73, up 5% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.1 billion, up 2.41% from the prior-year quarter.

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.

Any recent changes to analyst estimates for Hershey should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% lower. Hershey is holding a Zacks Rank of #4 (Sell) right now.

Valuation is also important, so investors should note that Hershey has a Forward P/E ratio of 19.63 right now. This expresses a premium compared to the average Forward P/E of 18.68 of its industry.

We can also see that HSY currently has a PEG ratio of 5.41. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Food - Confectionery stocks are, on average, holding a PEG ratio of 3.79 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 gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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