Hershey (HSY – Free Report) closed the most recent trading day at $166.83, moving +1.76% from the previous trading session. The stock outpaced the S&P 500’s daily loss of 4.84%. Elsewhere, the Dow saw a downswing of 3.98%, while the tech-heavy Nasdaq depreciated by 5.97%.
The chocolate bar and candy maker’s stock has dropped by 7.39% in the past month, falling short of the Consumer Staples sector’s gain of 5.4% and the S&P 500’s loss of 4.7%.
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 $1.96, showcasing a 36.16% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $2.83 billion, down 13.09% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.10 per share and a revenue of $11.42 billion, indicating changes of -34.9% and +1.93%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Hershey. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there’s been a 0.16% fall in the Zacks Consensus EPS estimate. Hershey presently features a Zacks Rank of #4 (Sell).
From a valuation perspective, Hershey is currently exchanging hands at a Forward P/E ratio of 26.86. This valuation marks a premium compared to its industry’s average Forward P/E of 22.48.
One should further note that HSY currently holds a PEG ratio of 5.83. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. As the market closed yesterday, the Food – Confectionery industry was having an average PEG ratio of 4.32.
The Food – Confectionery industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 216, finds itself in the bottom 13% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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