Is Hershey Stock a Good Investment?
Hershey Investment Advice | HSY |
- Examine Hershey's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Hershey's leadership team and their track record. Good management can help Hershey navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Packaged Foods & Meats space and any emerging trends that could impact Hershey's business and its evolving consumer preferences.
- Compare Hershey's performance and market position to its competitors. Analyze how Hershey is positioned in terms of product offerings, innovation, and market share.
- Check if Hershey pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Hershey's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Hershey Co stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Hershey Co is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Hershey Stock
Researching Hershey's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 88.0% of the company shares are owned by institutional investors. The company recorded earning per share (EPS) of 8.7. Hershey last dividend was issued on the 18th of November 2024. The entity had 2:1 split on the 16th of June 2004.
To determine if Hershey is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Hershey's research are outlined below:
| Hershey generated a negative expected return over the last 90 days | |
| Hershey Co has 5.13 B in debt with debt to equity (D/E) ratio of 1.69, which is OK given its current industry classification. Hershey has a current ratio of 0.78, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Hershey to invest in growth at high rates of return. | |
| Over 88.0% of Hershey shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: U.S. Confectionery Market Assessment and Forecasts to 2028 - The Hershey Company, Mars and Ferrero Continue to Dominate the Market |
Hershey Quarterly Good Will |
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Hershey uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Hershey Co. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Hershey's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 8th of February 2024 Upcoming Quarterly Report | View | |
| 25th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 8th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Hershey's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Hershey's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
1996-07-23 | 1996-06-30 | 0.11 | 0.13 | 0.02 | 18 | ||
1999-07-26 | 1999-06-30 | 0.15 | 0.18 | 0.03 | 20 | ||
2010-07-22 | 2010-06-30 | 0.46 | 0.51 | 0.05 | 10 | ||
2000-04-24 | 2000-03-31 | 0.21 | 0.26 | 0.05 | 23 | ||
2009-07-23 | 2009-06-30 | 0.35 | 0.43 | 0.08 | 22 | ||
2019-07-25 | 2019-06-30 | 1.18 | 1.31 | 0.13 | 11 | ||
2012-04-24 | 2012-03-31 | 0.81 | 0.96 | 0.15 | 18 | ||
2024-08-01 | 2024-06-30 | 1.43 | 1.27 | -0.16 | 11 |
Know Hershey's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Hershey is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Hershey Co backward and forwards among themselves. Hershey's institutional investor refers to the entity that pools money to purchase Hershey's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Norges Bank | 2024-06-30 | 1.7 M | Hhg Plc | 2024-06-30 | 1.5 M | Legal & General Group Plc | 2024-06-30 | 1.5 M | Macquarie Group Ltd | 2024-06-30 | 1.5 M | Amvescap Plc. | 2024-06-30 | 1.4 M | Northern Trust Corp | 2024-09-30 | 1.4 M | Amundi | 2024-06-30 | 1.2 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 1.2 M | Bank Of New York Mellon Corp | 2024-06-30 | 1.2 M | Vanguard Group Inc | 2024-09-30 | 19.4 M | Blackrock Inc | 2024-06-30 | 12.8 M |
Hershey's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 35.21 B.Market Cap |
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Hershey's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.27 | 0.28 | |
| Return On Capital Employed | 0.29 | 0.21 | |
| Return On Assets | 0.16 | 0.09 | |
| Return On Equity | 0.45 | 0.34 |
Determining Hershey's profitability involves analyzing its financial statements and using various financial metrics to determine if Hershey is a good buy. For example, gross profit margin measures Hershey's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Hershey's profitability and make more informed investment decisions.
Hershey's Earnings Breakdown by Geography
Please note, the imprecision that can be found in Hershey's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Hershey Co. Check Hershey's Beneish M Score to see the likelihood of Hershey's management manipulating its earnings.
Evaluate Hershey's management efficiency
Hershey has Return on Asset of 0.1275 % which means that on every $100 spent on assets, it made $0.1275 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.4341 %, implying that it generated $0.4341 on every 100 dollars invested. Hershey's management efficiency ratios could be used to measure how well Hershey manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to rise to 0.28 in 2024, whereas Return On Capital Employed is likely to drop 0.21 in 2024. At this time, Hershey's Total Assets are fairly stable compared to the past year. Non Current Assets Total is likely to rise to about 9.4 B in 2024, whereas Other Current Assets are likely to drop slightly above 196 M in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 20.02 | 21.02 | |
| Tangible Book Value Per Share | (4.09) | (3.88) | |
| Enterprise Value Over EBITDA | 14.53 | 10.04 | |
| Price Book Value Ratio | 9.31 | 8.57 | |
| Enterprise Value Multiple | 14.53 | 10.04 | |
| Price Fair Value | 9.31 | 8.57 | |
| Enterprise Value | 12.1 B | 12.7 B |
Leadership at Hershey emphasizes sustainable growth and financial prudence. Our analysis evaluates how these priorities impact the stock's performance in the market.
Dividend Yield 0.0315 | Forward Dividend Yield 0.0315 | Forward Dividend Rate 5.48 | Beta 0.374 |
Basic technical analysis of Hershey Stock
As of the 22nd of November, Hershey retains the Risk Adjusted Performance of (0.10), standard deviation of 1.25, and Market Risk Adjusted Performance of (1.00). Hershey technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices.Hershey's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Hershey insiders, such as employees or executives, is commonly permitted as long as it does not rely on Hershey's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Hershey insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
James Turoff over six months ago Disposition of 517 shares by James Turoff of Hershey at 192.49 subject to Rule 16b-3 | ||
Wolfe Kenneth L over a year ago Acquisition by Wolfe Kenneth L of 916 shares of Hershey subject to Rule 16b-3 |
Hershey's Outstanding Corporate Bonds
Hershey issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Hershey uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Hershey bonds can be classified according to their maturity, which is the date when Hershey Co has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| US427866AX66 Corp BondUS427866AX66 | View | |
| US427866AW83 Corp BondUS427866AW83 | View | |
| HERSHEY 32 percent Corp BondUS427866AU28 | View | |
| US427866BC11 Corp BondUS427866BC11 | View | |
| US427866BD93 Corp BondUS427866BD93 | View |
Understand Hershey's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Hershey's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.10) | |||
| Market Risk Adjusted Performance | (1.00) | |||
| Mean Deviation | 0.9188 | |||
| Coefficient Of Variation | (713.30) | |||
| Standard Deviation | 1.25 | |||
| Variance | 1.56 | |||
| Information Ratio | (0.22) | |||
| Jensen Alpha | (0.20) | |||
| Total Risk Alpha | (0.33) | |||
| Treynor Ratio | (1.01) | |||
| Maximum Drawdown | 6.7 | |||
| Value At Risk | (2.25) | |||
| Potential Upside | 1.68 | |||
| Skewness | (0.68) | |||
| Kurtosis | 1.42 |
| Risk Adjusted Performance | (0.10) | |||
| Market Risk Adjusted Performance | (1.00) | |||
| Mean Deviation | 0.9188 | |||
| Coefficient Of Variation | (713.30) | |||
| Standard Deviation | 1.25 | |||
| Variance | 1.56 | |||
| Information Ratio | (0.22) | |||
| Jensen Alpha | (0.20) | |||
| Total Risk Alpha | (0.33) | |||
| Treynor Ratio | (1.01) | |||
| Maximum Drawdown | 6.7 | |||
| Value At Risk | (2.25) | |||
| Potential Upside | 1.68 | |||
| Skewness | (0.68) | |||
| Kurtosis | 1.42 |
Consider Hershey's intraday indicators
Hershey intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Hershey stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 17088.34 | |||
| Daily Balance Of Power | 0.3878 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 174.44 | |||
| Day Typical Price | 174.61 | |||
| Price Action Indicator | 0.99 | |||
| Period Momentum Indicator | 0.95 | |||
| Relative Strength Index | 36.44 |
Hershey Corporate Filings
13A | 13th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 7th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 5th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
Hershey Stock media impact
Far too much social signal, news, headlines, and media speculation about Hershey that are available to investors today. That information is available publicly through Hershey media outlets and privately through word of mouth or via Hershey internal channels. However, regardless of the origin, that massive amount of Hershey data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Hershey news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Hershey relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Hershey's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Hershey alpha.
Hershey Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Hershey can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Hershey Historical Investor Sentiment
Investor biases related to Hershey's public news can be used to forecast risks associated with an investment in Hershey. The trend in average sentiment can be used to explain how an investor holding Hershey can time the market purely based on public headlines and social activities around Hershey Co. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Hershey's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Hershey and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Hershey news discussions. The higher the estimate score, the more favorable the investor's outlook on Hershey.
Hershey Corporate Directors
| Melissa Poole | Senior Director, IR Contact Officer | Profile | |
| David Shedlarz | Independent Director | Profile | |
| James Brown | Independent Director | Profile | |
| M Koken | Independent Director | Profile |
Additional Tools for Hershey Stock Analysis
When running Hershey's price analysis, check to measure Hershey's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Hershey is operating at the current time. Most of Hershey's value examination focuses on studying past and present price action to predict the probability of Hershey's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Hershey's price. Additionally, you may evaluate how the addition of Hershey to your portfolios can decrease your overall portfolio volatility.