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Here's Why Hershey (HSY) Gained But Lagged the Market Today

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The most recent trading session ended with Hershey (HSY - Free Report) standing at $153.57, reflecting a +0.46% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.88%. Elsewhere, the Dow saw an upswing of 1.24%, while the tech-heavy Nasdaq appreciated by 0.65%.

Prior to today's trading, shares of the chocolate bar and candy maker had lost 9.54% over the past month. This has lagged the Consumer Staples sector's loss of 2.9% and the S&P 500's gain of 1.17% in that time.

Market participants will be closely following the financial results of Hershey in its upcoming release. The company plans to announce its earnings on February 6, 2025. 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. At the same time, our most recent consensus estimate is projecting a revenue of $2.85 billion, reflecting a 7.4% rise from the equivalent quarter last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Hershey. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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, the Zacks Consensus EPS estimate has moved 3.37% lower. Hershey is holding a Zacks Rank of #5 (Strong Sell) right now.

Investors should also note Hershey's current valuation metrics, including its Forward P/E ratio of 19.7. This expresses a premium compared to the average Forward P/E of 18.72 of its industry.

One should further note that HSY currently holds a PEG ratio of 4.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Food - Confectionery industry had an average PEG ratio of 3.52.

The Food - Confectionery industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 219, which puts it in the bottom 13% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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