In this video, Motley Fool contributors Jason Hall and Tyler Crowe break down the news that the longtime CEO and board chair of Hershey (HSY 0.23%) announced her retirement recently, what it means for the company, and what to expect.
There's going to be a new nameplate before long on a C-suite door of candy company Hershey (HSY -1.25%). Just after market hours last Friday -- considered by many public relations professionals to be a suitable time slot to release bad news -- it announced that CEO Michele Buck will exit the company.
Hershey (HSY) closed at $155.31 in the latest trading session, marking a -1.25% move from the prior day.
The market indices all hit new highs in 2024, but some top consumer brands didn't fare as well and saw their share prices tumble to new lows.
Why Wall Street Has Been Too Bearish On Hershey
The S&P 500's high P/E ratio suggests caution, but there are nonetheless surprisingly good deals in high-quality companies available. Since I own The Hershey Company, I thought long and hard about adding Mondelez to my portfolio. I realized that Mondelez International, Inc. has several characteristics that indeed qualify it as a valuable addition. In addition to a business review, I will scrutinize the returns on capital of both companies and offer an alternative line of thinking when evaluating the profitability of Mondelez.
HSY is operating in a challenging environment, thanks to historically high cocoa prices and a stretched consumer base.
Shareholders in Hershey (HSY -1.99%) are hoping for sweeter days ahead following a frustrating 2024. Underwhelming sales by the confectioner have pressured the stock, which is down about 12% over the past year and currently near a 52-week low.
In the most recent trading session, Hershey (HSY) closed at $162.22, indicating a -1.99% shift from the previous trading day.
Hershey faces challenges, including record-high cocoa prices and potential demand impacts from weight loss drugs, affecting margins and growth outlook. Despite these headwinds, Hershey's strong financials, solid ROIC, and brand power suggest long-term investment potential if approached with a patient, mindful and gradual strategy. I suggest a cautious buy, using dollar-cost averaging over the next year to build a full position, considering Hershey's resilient business fundamentals.
Hershey: Forget The Takeover And Focus On What Matters
Hershey (HSY 0.14%) isn't normally viewed as a high-yield stock, but its dividend yield of 3.2% today is near its highest level ever. Investors can still easily find higher yields on Wall Street.