With over a 3% dividend yield, is this stock's future looking sweet, or sour?
Hershey isn't just the king of Halloween. While its chocolate products hold a 45% market share in the U.S., it's also rapidly expanding into salty snacks. Mondelez may offer more international flavors, but it faces greater exposure to rising input costs, currency risks, and competitive pressures. While Hershey has dealt with some short-term bumps, its strong brand loyalty and knock for navigating challenges make it the sweeter choice for long-term investors seeking stable returns.
These steady food and snacking businesses are available at a deep discount and look like magnificent holdings to buy and hold for decades.
In the latest trading session, Hershey (HSY) closed at $187.58, marking a +0.03% move from the previous day.
Despite Hershey's strategic focus, a challenging macroeconomic landscape and high input costs raise concerns.
In the latest trading session, Hershey (HSY) closed at $191.78, marking a -0.82% move from the previous day.
Rob Dickerson, Jefferies equity analyst, joins CNBC's 'The Exchange' to discuss why he's downgrading Hershey, how a gummy candies have eaten away at chocolate buyers, and more.
Though HSY is dealing with rising input costs, shrinking margins and increased price sensitivity in its chocolate segment, it still holds long-term potential.
Shares of Hershey Co. (HSY) was dropped to underperform by Jefferies analysts, calling chocolate “amongst the most concerning” segments of the US snack sector in a note Thursday.
Jefferies has downgraded Hersheys from “hold” to “underperform” on expectations that the chocolate maker is likely to face significant challenges over the next three years on account of a decline in sales and margin compression.
Hershey (HSY) reachead $193.34 at the closing of the latest trading day, reflecting a -0.92% change compared to its last close.
Hershey shares are down more than 25% from their 2023 highs. The confectionery company is facing rising cocoa prices and the potential threat from a new class of weight loss drugs.