#6 - Hershey (NYSE:HSY)
The Hershey Company (NYSE: HSY) is another market laggard, down about 3.4% in 2024. The company has felt margin pressure from higher cocoa prices and less demand from consumers. In fact, a bearish argument against Hershey’s is that sales volume is down as prices rise. That makes it hard to argue for a strong consumer.
In fact, of the seven downgrades Hershey’s has received in the past 30 days, three have been rating downgrades. One of the more devastating reports came from Redburn Atlantic, which initiated its coverage with a Sell rating, citing “flat chocolate consumption, rising health concerns and intensified competition.”
That's a glass-half-empty look at the future. Other analysts don’t appear to be that negative on the stock. Hershey’s needs the consumer to spend in this last quarter of the year. But HSY stock seems to have found a bottom around $180 which could make this a good time to accumulate and collect an inflation-beating dividend in the process.
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
- $177.56
- Consensus Rating
- Reduce
- Ratings Breakdown
- 0 Buy Ratings, 14 Hold Ratings, 5 Sell Ratings.
- Consensus Price Target
- $191.61 (7.9% Upside)
