#3 - Hershey (NYSE:HSY)
It's been a bitter year for growth-oriented investors to own shares of The Hershey Company (NYSE: HSY). The stock is down 4.38% in 2024, but it’s important to filter out the noise surrounding the decline.
You’ll hear that there are concerns about the impact of GLP-1 drugs on revenue. There may be some truth to that. However, the primary headwind for Hershey’s comes from elevated cocoa prices. In fact, Hershey’s is the one stock on this list that analysts are forecasting to have negative earnings in 2025.
So why is it a Buy? First, if the Federal Reserve continues to lower interest rates, consumers may feel better about purchasing products like chocolate. And while that may not hit the company’s topline this holiday season, it may show up around Easter and Mother’s Day which occur in what is historically one of the company’s strongest quarters.
Plus, HSY stock is a Dividend Achiever, having increased its dividend for 15 consecutive years. More importantly, the company has averaged 12.2% dividend growth over the past three years. That's significantly above the rate of inflation, which helps protect your investment.
About Hershey
The Hershey Company, together with its subsidiaries, engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally. The company operates through three segments: North America Confectionery, North America Salty Snacks, and International. It offers chocolate and non-chocolate confectionery products; gum and mint refreshment products, including mints, chewing gums, and bubble gums; protein bars; pantry items, such as baking ingredients, toppings, beverages, and sundae syrups; and snack items comprising spreads, bars, snack bites, mixes, popcorn, and pretzels.
Read More - Current Price
- $170.92
- Consensus Rating
- Reduce
- Ratings Breakdown
- 0 Buy Ratings, 14 Hold Ratings, 5 Sell Ratings.
- Consensus Price Target
- $189.33 (10.8% Upside)
