Next year, it might get costlier to taste Hershey’s chocolates.
The chocolate maker is planning to raise prices of one-fifth of its products by around 2.5% in 2019. The company hopes that higher prices would cushion its rising costs of production inputs and logistics. Initially, Hershey had wanted to hike prices by summer.
In addition to price hikes, the company is focusing on digital strategies to milk a rapidly growing e-commerce market, while also adding new products and making acquisitions to boost revenues.
Chief executive officer Michele Buck indicated that the company’s association with SkinnyPop popcorn – following Hershey’s last year acquisition of Amplify Snack Brands – has turned out well for the company’s sales growth.
Also seeming to target an increasingly health-conscious population, Hershey announced this year that it would buy Pirate Brands from B&G Foods Inc. for $420 million. Pirate Brands makes apparently healthy snacks such as Pirate's Booty, Smart Puffs and Original Tings.
The company has also launched new products such as like Hershey's Gold (a "caramelized creme" bar with pretzels and peanuts baked inside) and Reese's Outrageous (a peanut butter chocolate bar with Reese's candy inside). Reese's Thins, a 40% thinner Reese's peanut butter cup, will be in stores in 2019.
Hershey revenues increased by +2.9% in Q3, compared to the same period last year.
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where HSY advanced for three days, in of 328 cases, the price rose further within the following month. The odds of a continued upward trend are .
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where HSY's RSI Oscillator exited the oversold zone, of 25 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 26, 2024. You may want to consider a long position or call options on HSY as a result. In of 79 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for HSY just turned positive on April 29, 2024. Looking at past instances where HSY's MACD turned positive, the stock continued to rise in of 51 cases over the following month. The odds of a continued upward trend are .
HSY moved above its 50-day moving average on April 29, 2024 date and that indicates a change from a downward trend to an upward trend.
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The 10-day moving average for HSY crossed bearishly below the 50-day moving average on April 15, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 19 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HSY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
HSY broke above its upper Bollinger Band on April 30, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for HSY entered a downward trend on April 26, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.881) is normal, around the industry mean (8.292). P/E Ratio (21.884) is within average values for comparable stocks, (26.814). Projected Growth (PEG Ratio) (3.829) is also within normal values, averaging (2.471). Dividend Yield (0.024) settles around the average of (0.043) among similar stocks. P/S Ratio (3.650) is also within normal values, averaging (62.729).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. HSY’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of chocolate, candy, chewing gum, non-confectionery products and snack foods
Industry FoodSpecialtyCandy