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Investor Insights

This summary was created by AI, based on 6 opinions in the last 12 months.

Hershey Foods Corp (HSY-N) is a leading consumer packaged goods company with a dominant market share in North America. Despite the expected decline in cocoa prices, the company is facing challenges due to price increases and volume declines in its core selling season of Halloween. The stock is currently trading at a multiple of 20x earnings and offers a decent yield of 2.35%. The company's stable and resilient business model, along with consistently raised dividends and share buybacks, provides some support, but the experts are cautious about its growth potential and high valuation.

Consensus
Cautious
Valuation
Fair Value
HOLD
Hershey Foods Corp

Iconic brand with many subsidiaries. However, recent M&A has not panned out well. Salty "snack" business not panning out as well as planned. Owns shares and will continue to hold. Expecting higher margins, sales and cash flow going forward. Cocoa prices are expected to fall as well. 

food processing
TOP PICK
Hershey Foods Corp

All 3 picks today are contrarian value propositions. Stock was crushed by skyrocketing price of cocoa. Nothing lasts forever. Cocoa's rounded over, and now the chart for HSY is ticking up after it based for a while and broke out. Fundamentally, the problems will get sorted, cocoa will be cheaper, and HSY profits will go up. Yield is 2.6%.

An example of how the fundamental story and the technical chart work together. 

(Analysts’ price target is $206.55)
food processing
TOP PICK
Hershey Foods Corp

Added to dividend growth fund. Seasonal business with 45% market share in North America. Also has "salty snacks" brands business. Earns excellent margins on business with very strong profits. Leading ESG rated consumer packaged goods company. Tripling of coco prices expected to fall in the coming months. Very good time to buy at 20x earnings. 

food processing
DON'T BUY
Hershey Foods Corp

Expensive, and he's never understood why. Trades around 25-30x earnings. Most competitors trade 10-12 points lower. Pass.

food processing
DON'T BUY
Hershey Foods Corp

Within its sector, one of the best on organic growth and margins. Weight-loss drugs are turning people off snacking. Not the growthiest company, trades at a big multiple. With interest rates coming down, investors are moving toward better growth profiles.

food processing
WATCH
Hershey Foods Corp

Unsure on direction of stock. Strong decline lately. Might be a good time to buy given small rebound in stock price. 

food processing
TOP PICK
Hershey Foods Corp

Halloween is the core selling season. Largest chocolate producer in NA. 45% dominant share in chocolate, 30+% in general confectionery. Small, but fast-growing, salty snacks business. Small business selling into both EMs and developed markets. 

Best-in-class operating margins, 10 points above peers. 26% ROIC at 3x its cost of capital, leading all peers. Best ESG rating. Pullback due to price increases and volume declines. Trades at 20x earnings vs. long-term average of 24x. Yield is 2.35%.

(Analysts’ price target is $252.05)
food processing
HOLD
Hershey Foods Corp
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

HSY is a mature consumer staple name and is now trading at 23x times' Forward P/E (historical averages range from 19x to 27x). HSY’s volume growth is largely mature, however, the company has decent pricing power, which helped drive revenue growth by double-digits in the last two years. The balance sheet is okay, with net debt of $4.5B and the net debt/EBITDA is now at 1.7x. Going forward revenue growth would be around 5% on average over the next few years. HSY also has consistently raised dividends and done share buybacks which we like.

Overall, stable, resilient businesses but not cheap, we think it is ok but have a hard time getting excited about a sub-5% grower (in a normal environment) trading at 23X forward earnings.
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food processing
BUY
Hershey Foods Corp

The CEO turned it around and just reported an amazing quarter. Continue to own it.

food processing
BUY
Hershey Foods Corp
Run by a smart CEO. Is up 1% in the past month.
food processing
BUY ON WEAKNESS
Hershey Foods Corp
It was a dog for a long time, never an earnings story, a take-over target. The new CEO has turned it around since 2017 to grow the business and extend the brands (i.e. zero-sugar products). She boosted cash flow and rewarded shareholders. She made fine acquisitions that paid off during the Covid lockdowns when people were snacking a lot. Buy on the next inflation scare. They have pricing power.
food processing
BUY
Hershey Foods Corp
He owns it because they dominate in every category: pricing and balance sheet (1.5x debt-to-EBITDA). A great franchise.
food processing
DON'T BUY
Hershey Foods Corp
No catalyst to rise. Not exciting. It's supposed to grow earnings and sales around 5% in 2022, and trades at 24x and pays a 2% dividend. A good chart for a break-out, but he still doesn't care for ir.
food processing
PAST TOP PICK
Hershey Foods Corp
(A Top Pick Sep 12/18, Up 46%) 7% earnings growth rate. You pay a premium, as we're in late cycle. 2% dividend, low beta. Dominance in US confectionery space. Starting to diversify. Still room to grow, especially as money is rotating to more defensive plays.
food processing
TOP PICK
Hershey Foods Corp

Global leader with over 80 brands. A lot of revenues are inside NA and US, so tariffs are not a worry. Last earnings topped estimates. A defensive growth name as we get late in the cycle. Price recently pushed above 200-day moving average, which is encouraging. Pretty decent valuation for a consumer staple. Yield is 2.7%. (Analysts’ price target is $98.33.)

food processing
Showing 1 to 15 of 24 entries

Hershey Foods Corp(HSY-N) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 2

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 4

Stockchase rating for Hershey Foods Corp is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Hershey Foods Corp(HSY-N) Frequently Asked Questions

What is Hershey Foods Corp stock symbol?

Hershey Foods Corp is a American stock, trading under the symbol HSY-N on the New York Stock Exchange (HSY). It is usually referred to as NYSE:HSY or HSY-N

Is Hershey Foods Corp a buy or a sell?

In the last year, 4 stock analysts published opinions about HSY-N. 0 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Hershey Foods Corp.

Is Hershey Foods Corp a good investment or a top pick?

Hershey Foods Corp was recommended as a Top Pick by on . Read the latest stock experts ratings for Hershey Foods Corp.

Why is Hershey Foods Corp stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Hershey Foods Corp worth watching?

4 stock analysts on Stockchase covered Hershey Foods Corp In the last year. It is a trending stock that is worth watching.

What is Hershey Foods Corp stock price?

On 2024-06-24, Hershey Foods Corp (HSY-N) stock closed at a price of $186.28.