In the latest close session, Hershey (HSY) was down 1.33% at $179.99. The stock fell short of the S&P 500, which registered a gain of 0.64% for the day. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 0.69%.
Heading into today, shares of the chocolate bar and candy maker had gained 0.06% over the past month, outpacing the Consumer Staples sector's loss of 0.94% and lagging the S&P 500's gain of 0.55%.
Analysts and investors alike will be keeping a close eye on the performance of Hershey in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.4, showcasing a 47.96% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $2.98 billion, up 3.34% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6 per share and revenue of $11.59 billion. These totals would mark changes of -35.97% and 0%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Hershey. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.87% higher. Hershey presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Hershey is at present trading with a Forward P/E ratio of 26.29. This valuation marks a premium compared to its industry average Forward P/E of 18.4.
The Food - Confectionery industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 107, putting it in the top 44% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Hershey Company (The) (HSY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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