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Hershey (HSY) Gains As Market Dips: What You Should Know

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·3 min read
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Hershey (HSY) closed the most recent trading day at $213.35, moving +1.86% from the previous trading session. This change outpaced the S&P 500's 2.91% loss on the day. At the same time, the Dow lost 2.73%, and the tech-heavy Nasdaq lost 0.25%.

Coming into today, shares of the chocolate bar and candy maker had lost 5.88% in the past month. In that same time, the Consumer Staples sector lost 2.55%, while the S&P 500 gained 0.84%.

Wall Street will be looking for positivity from Hershey as it approaches its next earnings report date. In that report, analysts expect Hershey to post earnings of $1.66 per share. This would mark year-over-year growth of 12.93%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.22 billion, up 11.59% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.03 per share and revenue of $9.97 billion, which would represent changes of +11.84% and +11.11%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Hershey. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.24% lower within the past month. Hershey is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Hershey is holding a Forward P/E ratio of 26.08. This represents a premium compared to its industry's average Forward P/E of 25.51.

Meanwhile, HSY's PEG ratio is currently 3.4. 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. The Food - Confectionery industry currently had an average PEG ratio of 3.4 as of yesterday's close.

The Food - Confectionery industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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