In the latest close session, Hershey (HSY) was up +1.38% at $179.11. The stock's performance was ahead of the S&P 500's daily loss of 0.05%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 0.24%.
Prior to today's trading, shares of the chocolate bar and candy maker had lost 10.33% lagged the Consumer Staples sector's loss of 0.16% and the S&P 500's loss of 1.42%.
Market participants will be closely following the financial results of Hershey in its upcoming release. The company's earnings per share (EPS) are projected to be $1.46, reflecting a 20.66% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.66 billion, up 1.84% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.45 per share and revenue of $12.29 billion, indicating changes of +33.91% and +5.09%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Hershey. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, there's been a 0.1% fall in the Zacks Consensus EPS estimate. Currently, Hershey is carrying a Zacks Rank of #3 (Hold).
Investors should also note Hershey's current valuation metrics, including its Forward P/E ratio of 20.92. This valuation marks a premium compared to its industry average Forward P/E of 19.81.
It is also worth noting that HSY currently has a PEG ratio of 1.06. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Food - Confectionery industry stood at 1.06 at the close of the market yesterday.
The Food - Confectionery industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 217, finds itself in the bottom 12% echelons 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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Hershey Company (The) (HSY): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).