Yahoo Finance Hershey (HSY) Rises Yet Lags Behind Market: Some Facts Worth Knowing
Hershey (HSY) closed the latest trading day at $187.08, indicating a +0.4% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 1.2% for the day. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 1.59%.
The the stock of chocolate bar and candy maker has fallen by 3.08% in the past month, lagging the Consumer Staples sector's loss of 1.51% and overreaching the S&P 500's loss of 4.16%.
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 May 3, 2024. The company is predicted to post an EPS of $2.73, indicating a 7.77% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.12 billion, indicating a 4.54% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.60 per share and revenue of $11.47 billion, which would represent changes of +0.1% and +2.77%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Hershey. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. Hershey presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Hershey currently has a Forward P/E ratio of 19.41. For comparison, its industry has an average Forward P/E of 18.72, which means Hershey is trading at a premium to the group.
We can additionally observe that HSY currently boasts a PEG ratio of 2.86. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Food - Confectionery stocks are, on average, holding a PEG ratio of 2.57 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 94, putting it in the top 38% of all 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Hershey Company (The) (HSY) : Free Stock Analysis Report
