Hershey (HSY, $108.17) To Make Chocolates Pricier, While Stacking Up New Products
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.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
HSY's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for HSY turned positive on October 08, 2026. Looking at past instances where HSY's MACD turned positive, the stock continued to rise in 33 of 47 cases over the following month. The odds of a continued upward trend are 70%.
Technical Analysis (Indicators)
Bullish Trend Analysis
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, 21 of 36 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 58%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 39 of 60 cases where HSY's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 65%.
Following a +1.50% 3-day Advance, the price is estimated to grow further. Considering data from situations where HSY advanced for three days, in 193 of 300 cases, the price rose further within the following month. The odds of a continued upward trend are 64%.
HSY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The 10-day moving average for HSY crossed bearishly below the 50-day moving average on September 09, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 10 of 13 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 77%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 61%.
The Aroon Indicator for HSY entered a downward trend on October 09, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 24 (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: HSY's P/B Ratio (7.241) is slightly higher than the industry average of (3.067). P/E Ratio (22.460) is within average values for comparable stocks, (21.001). Projected Growth (PEG Ratio) (0.826) is also within normal values, averaging (1.364). Dividend Yield (0.035) settles around the average of (0.019) among similar stocks. P/S Ratio (2.856) is also within normal values, averaging (1.937).
The Tickeron SMR rating for this company is 31 (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 PE Growth Rating for this company is 47 (best 1 - 100 worst), pointing to consistent 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 Tickeron Price Growth Rating for this company is 61 (best 1 - 100 worst), indicating steady price growth. HSY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 94 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. HSY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock worse than average.
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a manufacturer of chocolate, candy, chewing gum, non-confectionery products and snack foods
Industry FoodSpecialtyCandy
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