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Chicago, IL – March 10, 2026 – Zacks Equity Research shares Hershey HSY as the Bull of the Day and Eagle Materials EXP as the Bear of the Day. In addition, Zacks Equity Research provides analysis on —Chevron Corp. CVXCVX, BP plc BP and Exxon Mobil Corp. XOM.
Here is a synopsis of all three stocks:
The Hershey Company, a Zacks Rank #1 (Strong Buy), is the largest chocolate manufacturer in North America as well as a global leader in chocolate and non-chocolate confectionery. The company also manufactures pantry items like baking ingredients, toppings and beverages; gum and mint refreshment products; and snack bites and mixes, as well as spreads.
The stock is displaying relative strength and has been making a series of 52-week highs. The price movement is a sign of strength as we head further into the new year. Increasing volume has attracted investor attention as buying pressure accumulates in this top-ranked stock.
The lifeblood of a bull market is rotation, or the passing of the baton from one group to the next. With every year comes a different market theme. It’s our job to identify that theme as early as possible and position our portfolios to benefit from it. This year’s market action has witnessed a notable rotation in industry strength.
Hershey is part of the Zacks Food – Confectionery industry group, which currently ranks in the top 2% out of more than 250 industries. Because this group is ranked in the top half of all Zacks Ranked Industries, we expect it to outperform the market over the next 3 to 6 months, just as it has so far this year:
Historical research studies suggest that approximately half of a stock’s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1.
It’s no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top industries, we can dramatically improve our stock-picking success.
Founded in 1894, Hershey provides its products under numerous recognized brands such as Hershey’s, Reese’s, Jolly Rancher, barkTHINS, Twizzlers, SkinnyPop, and Pirates Booty, as well as many others. Hershey’s portfolio of iconic brands remains a core competitive advantage, supporting pricing power and category leadership.
The iconic American heritage brand markets and sells its products to wholesale distributors, chain grocery and drug stores, mass merchandisers, convenience stores, and department stores. It exports its products in approximately 65 countries worldwide.
Hershey continues to showcase the resilience of its brands and business model, even amid elevated cocoa and input cost pressures. Its strong pricing actions, deep retail connections and leadership in confectionery provide a stable revenue base, while its budding salty snacks portfolio expands its reach across the broader snacking category.
The global confectionery powerhouse reported strong growth in its North America Salty Snacks business during the fourth quarter of last year. Segment sales increased 28% year-over-year to $357 million during the quarter, backed by contributions from the LesserEvil acquisition as well as organic constant currency sales growth of 18.2%. Management has indicated a robust innovation pipeline extending into 2027, spanning both salty snacks and chocolate.
Hershey has established an impressive reporting history, surpassing earnings estimates in each of the past four quarters. The company most recently delivered fourth-quarter earnings back in February of $1.71 per share, which marked a 22.1% surprise over the $1.40/share consensus estimate.
The innovator of everyday treats delivered a trailing four-quarter average surprise of 17.2%. Consistently beating earnings estimates is a recipe for success.
Analysts covering HSY are in agreement and have raised full-year EPS estimates by 18.09% in the past 60 days. The Zacks Consensus Estimate now stands at $8.16/share, reflecting potential growth of nearly 30% relative to last year.
This market leader has seen its stock advance more than 20% already this year, all while the general market struggles to gain traction. Only stocks that are in extremely powerful uptrends are able to experience this type of outperformance. This is the kind of stock we want to include in our portfolio – one that is trending well and receiving positive earnings estimate revisions.
Notice how both the 50-day (blue line) and 200-day (red line) moving averages are sloping up. The stock has been making a series of higher highs throughout the past year. With both strong fundamental and technical indicators, HSY stock is poised to continue its outperformance.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, Hershey has recently witnessed positive revisions. As long as this trend remains intact (and HSY continues to deliver earnings beats), the stock will likely continue its bullish run.
Backed by a leading industry group and history of earnings beats, it’s not difficult to see why HSY stock is a compelling investment. Robust fundamentals combined with an appealing technical trend certainly justify adding shares to the mix.
Hershey continues to strengthen its cost structure through multi-year operational initiatives aimed at modernizing manufacturing, procurement and supply-chain planning. Promising sales trends point to continued growth ahead.
Recent positive earnings estimate revisions should also serve to create a ‘floor’ in terms of any sudden or unexpected downside moves. If you haven’t already done so, be sure to put HSY on your shortlist.
Eagle Materials is a supplier of construction materials in the United States. The company produces and supplies cement, concrete and aggregates, gypsum wallboard, and recycled paperboard. Operating via a vertically integrated business model, its products are used in commercial and residential construction across the country including builders, contractors, and infrastructure projects.
Key challenges remain for Eagle in 2026. Its wallboard business has been struggling lately due to slow housing activity. Wallboard volumes fell about 14% year-over-year in fiscal Q3, with prices dropping 5% amid price pressures. This is the company’s key exposure to housing starts, which remain challenged by high rates and affordability issues. The broader housing recovery is dependent on lower mortgage rates, which may remain elevated given lingering inflation.
Eagle operates in a highly cyclical business that is tied to residential housing and broader construction spending. As we’ll see, analysts have been cutting earnings estimates lately, putting downward pressure on the stock. Economic slowdowns or delays in infrastructure projects could exacerbate this pressure.
In addition, margins are experiencing compression as input costs remain volatile. The lack of growth potential in the year ahead simply doesn’t warrant a bullish stance.
A Zacks Rank #5 (Strong Sell) stock, Eagle Materials is a component of the Building Products – Concrete and Aggregates industry group, which currently ranks in the bottom 15% out of approximately 250 Zacks Ranked Industries. As such, we expect this industry group as a whole to underperform the market over the next 3 to 6 months, just as it has over the past month:
Stocks in the bottom tiers of industries can often be intriguing short candidates. While individual stocks have the ability to outperform even when they’re part of a lagging industry, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey forward is that much more difficult.
EXP shares have widely underperformed the market over the past year. The lack of participation in the latest bull market signals caution ahead.
Eagle Materials missed the earnings mark in three of the past four quarters. In its latest quarterly report, the company missed EPS estimates by 3% with flat overall revenue. This triggered cuts to forward guidance, contributing to fading earnings momentum and a lower Zacks Rank.
During the fiscal third quarter, earnings fell 10.3% from the year-ago period, while the top line also declined year-over-year. Consistently falling short of projections is a recipe for underperformance, and EXP is no exception.
The construction materials supplier has been on the receiving end of negative earnings estimate revisions as of late. Looking into the fiscal fourth quarter, analysts cut estimates by 17.68% in the past 60 days. The Zacks Consensus EPS Estimate is now $1.49 per share, translating to a 28.4% decline relative to the same period in the prior year. Revenues are anticipated to drop nearly 2% during the quarter to $461.6 million.
Falling earnings estimates are a huge red flag and need to be respected. Negative growth year-over-year is the type of trend that bears like to see.
As illustrated below, EXP stock is in a sustained downtrend. Notice how the stock has been widely underperforming the major indices. Also note that shares are trading below downward-sloping 50-day (blue line) and 200-day (red line) moving averages – another good sign for the bears.
The lack of buying pressure is a sign that this stock should be avoided. Shares would have to make an outsized move to the upside and show increasing earnings estimate revisions to warrant taking any long positions. The stock has fallen nearly 16% in the past six months alone.
A deteriorating fundamental and technical backdrop show that this stock is not set to make its way to new highs anytime soon. The fact that EXP stock is included in one of the worst-performing industry groups adds yet another headwind to a long list of concerns.
A shaky earnings history and falling future earnings estimates will likely serve as a ceiling to any potential rallies, nurturing the stock’s downtrend.
Potential investors may want to give this stock the cold shoulder, or perhaps include it as part of a short or hedge strategy. Bulls will want to steer clear of EXP until the situation shows major signs of improvement.
Global oil prices have rallied in the past week owing to rising geopolitical tensions in the Middle East. The escalating conflict between the U.S. and Iran has effectively blocked oil shipments through the Strait of Hormuz. The Strait of Hormuz is one of the most crucial oil chokepoints globally, according to the U.S. Energy Information Administration (EIA). In fact, approximately one-fifth of the world’s total oil and gas supply moves through the strait. Furthermore, the geopolitical situation has also prompted several oil-producing companies in the Middle East to curb their production levels.
Initially, this year, oil prices were expected to reach as low as below $55 per barrel, per data from the U.S. EIA. However, the recent conflict in the Middle East and the damage to oil production infrastructure, along with the disruption of oil supply through the Strait of Hormuz, have rattled global commodity markets, with oil prices surging to nearly $100 per barrel.
The tightening of global crude oil supplies is expected to keep oil prices in the bullish territory, thereby aiding many global upstream producers, including Chevron Corp., BP plc and Exxon Mobil Corp. In the past month, CVX shares have risen 4.6%, while XOM has gained 0.9% and BP has increased 9.6%. All three companies currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chevron has an unmatched portfolio of high-quality assets in the Permian Basin that continues to drive peer-leading organic growth. Furthermore, the company has a global presence and key international assets as well, which include premium assets in Guyana, Bakken, and the Gulf of America, from the Hess acquisition in 2025. Thus, Chevron’s upstream segment should benefit from rising crude oil prices, enhancing earnings and free cash flow.
BP plc is taking significant strides towards increasing its upstream production. The company started seven major upstream projects in 2025, with several more expected to start in 2026 and 2027. BP’s upstream activities have substantial exposure to rising oil prices and are expected to support higher profits and cash flows.
ExxonMobil stands out among other industry majors due to its strong upstream presence, with more than 50% of its oil and gas production coming from high-return, advantaged assets with low production costs. These high-return assets, including its Guyana and Permian Basin resources, provide a competitive edge over other players and secure a robust production outlook as the company continues to grow total production from them.
In fact, the company has mentioned that it intends to grow its upstream production to 5.5 million oil equivalent barrels per day by 2030. XOM’s advantaged assets are characterized by low break-even costs that will allow the energy giant to generate high profits and cash flows in a rising oil price environment.
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This article originally published on Zacks Investment Research (zacks.com).
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