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.
The Aroon Indicator for HSY entered a downward trend on April 18, 2024. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 173 similar instances where the Aroon Indicator formed such a pattern. In of the 173 cases the stock moved lower. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on April 11, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on HSY as a result. In of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for HSY turned negative on April 03, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at .
HSY moved below its 50-day moving average on April 10, 2024 date and that indicates a change from an upward trend to a downward trend.
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 .
The RSI Oscillator 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 Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HSY advanced for three days, in of 332 cases, the price rose further within the following month. The odds of a continued upward trend are .
HSY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call 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 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 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 79, placing this stock better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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