In the latest trading session, Hershey (HSY) closed at $223.80, marking a -1.1% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.11%. Meanwhile, the Dow lost 1.54%, and the Nasdaq, a tech-heavy index, lost 0.3%.
Heading into today, shares of the chocolate bar and candy maker had gained 0.73% over the past month, outpacing the Consumer Staples sector's loss of 7.43% and the S&P 500's loss of 8.19% in that time.
Investors will be hoping for strength from Hershey as it approaches its next earnings release. In that report, analysts expect Hershey to post earnings of $2.07 per share. This would mark a year-over-year decline of 1.43%. Our most recent consensus estimate is calling for quarterly revenue of $2.61 billion, up 10.43% from the year-ago period.
HSY's full-year Zacks Consensus Estimates are calling for earnings of $8.21 per share and revenue of $10.22 billion. These results would represent year-over-year changes of +14.35% and +13.86%, respectively.
Investors should also note any recent changes to analyst estimates for Hershey. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Hershey is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Hershey is holding a Forward P/E ratio of 27.57. For comparison, its industry has an average Forward P/E of 25.15, which means Hershey is trading at a premium to the group.
Also, we should mention that HSY has a PEG ratio of 3.6. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Food - Confectionery stocks are, on average, holding a PEG ratio of 3.6 based on yesterday's closing prices.
The Food - Confectionery industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 14% 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.
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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