Last Updated: 13 Sep 2024
Executive Summary
Hershey Co. (HSY) is a leading global chocolate manufacturer with a strong financial performance and a positive outlook. The company's latest stock price of $198.46 reflects its solid fundamentals and growth potential.
Company Overview
Hershey's is an American multinational company headquartered in Hershey, Pennsylvania. It is one of the largest chocolate manufacturers in the world, producing a wide range of chocolate products, baked goods, and beverages.
Fundamental Analysis
Financial Performance: Hershey's has consistently reported strong financial results. In the latest quarter (ending June 2024), the company reported revenue of $11.01 billion, a 0.17% increase year-over-year. Net income for the quarter was $3.02 billion, a 0.55% decrease year-over-year.
Profitability: Hershey's has a healthy profit margin of 16.8% and an operating margin of 15.7%. The company's return on assets and return on equity are also strong at 13.5% and 47.9%, respectively.
Valuation: Based on the latest earnings, Hershey's has a trailing price-to-earnings (PE) ratio of 22.47 and a forward PE ratio of 20.92. The company's price-to-sales ratio is 3.725 and its price-to-book ratio is 10.02.
Technical Analysis
Trend: Hershey's stock has been trending sideways in recent months. The 50-day moving average is currently at $194.32 and the 200-day moving average is at $192.52.
Support and Resistance: The key support level for Hershey's is at $190 and the key resistance level is at $205.
Momentum: The relative strength index (RSI) for Hershey's is currently at 52.5, indicating a neutral momentum.
Short Term Outlook
In the short term, Hershey's stock is likely to continue trading within the range of $190 to $205. The company's strong fundamentals and positive analyst sentiment provide support for the stock, while the current sideways trend may limit upside potential.
Long Term Outlook
The long-term outlook for Hershey's is positive. The company's strong brand recognition, global reach, and commitment to innovation position it well for continued growth. The increasing demand for chocolate and other confectionery products, particularly in emerging markets, is expected to drive Hershey's revenue and earnings in the years to come.
Analyst Recommendations
Analysts are generally positive on Hershey's stock. The consensus recommendation is "Hold" with 19 analysts rating the stock as a "Hold," 2 as a "Buy," and 3 as a "Strong Buy." The average analyst target price is $203.37.
