Hershey (HSY) Falls More Steeply Than Broader Market: What Investors Need to Know

Company Performance - Hershey's stock closed at $197.63, reflecting a decrease of -0.83% from the previous day, which is less than the S&P 500's daily loss of 0.29% [1] - Over the last month, Hershey's shares increased by 0.69%, underperforming the Consumer Staples sector's gain of 3.54% and the S&P 500's gain of 1.57% [1] - The upcoming earnings disclosure is anticipated, with expected EPS of$ 2.78, representing a 6.92% increase from the prior-year quarter, and projected revenue of $3.13 billion, indicating a 3.39% rise from the equivalent quarter last year [1][2] Analyst Estimates - For the entire year, the Zacks Consensus Estimates forecast earnings of$ 9.49 per share and revenue of $11.36 billion, showing changes of -1.04% and +1.78% respectively compared to the previous year [2] - Recent changes to analyst estimates for Hershey suggest evolving short-term business trends, with positive revisions indicating a favorable business outlook [2] Zacks Rank and Valuation - The Zacks Rank system rates Hershey at 3 (Hold), with a historical average annual return of +25% for 1 ranked stocks since 1988 [3] - Hershey has a Forward P/E ratio of 21, which is a premium compared to the industry average Forward P/E of 19.17 [3] - The company holds a PEG ratio of 5.79, while the Food - Confectionery industry has an average PEG ratio of 3.94 [3] Industry Overview - The Food - Confectionery industry is part of the Consumer Staples sector and currently holds a Zacks Industry Rank of 209, placing it in the bottom 18% of all industries [4] - The Zacks Industry Rank assesses the strength of industry groups, indicating that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]