Stock Performance and Market Speculation - Hershey's stock experienced significant volatility in December, trading between $168 and $208 due to takeover speculation [1] - The stock price eventually settled after the speculation subsided [1] Investment Strategy and Background - The analyst focuses on long-term investing through low-risk ETFs and CEFs, with a macro perspective [1] - The analyst has nearly ten years of experience trading stocks and currencies and currently manages a family fund [1] - The analyst also invests in real estate and contributes to Matrixtrade as a freelance writer [1]

Hershey's Dividend Yield and Valuation - Hershey's current dividend yield of 3.2% is near its highest level ever, significantly higher than the S&P 500's 1.2% and the average consumer staples company's 2.5% [1] - The stock appears historically cheap, with a 38% price decline from its peak, making it an attractive investment opportunity [7] - Over the past decade, Hershey's revenue grew at an annualized rate of 4.5%, while earnings per share increased by nearly 10% annually [7] - Management has increased the dividend at an annualized rate of 10% over the past decade, appealing to dividend growth investors [8] Challenges Facing Hershey - Cocoa prices have risen sharply due to supply-demand imbalances, leading to higher cost of goods sold inflation expected in 2025 [2][3] - The company has hedged its cocoa exposure for 2024, but these hedges will eventually roll off, exposing it to future price volatility [2] - The popularity of new weight loss drugs, which suppress appetite and promote healthier eating, poses a long-term threat to Hershey's top line [4] - These challenges have contributed to a selling mood among investors [5] Potential Mitigating Factors - Hershey has a history of managing commodity price volatility and is likely to adjust by increasing prices [9] - The company believes cocoa prices will normalize, with a potential surplus expected in 2025, though the market dislocation may take time to resolve [9] - The long-term impact of weight loss drugs may be limited, as studies show only about 50% of people adhere to long-term medication regimens [10] - Early-stage adverse effects of weight loss drugs, such as muscle loss, could limit their widespread adoption [11] Investment Opportunity - The current market sentiment presents a buying opportunity for long-term investors, as Hershey's challenges may be temporary and less severe than feared [12][13] - The company's strong historical performance and attractive dividend yield make it a compelling choice for dividend growth investors [13]

The Hershey Company’s (HSY) stock has taken a hit recently, with a 11.8% drop over the past three months compared with the industry’s decline of 9.3%. The iconic chocolate maker is facing an increasingly tough environment, marked by rising commodity costs and shifting consumer behavior.Hershey reported a decline in net sales and earnings for the third quarter, causing it to lower its 2024 guidance. This weaker outlook, caused by high cocoa prices and a budget-conscious consumer base, has raised concerns abo ...

The Hershey Company (HSY 0.88%) is an iconic stock thanks in no small part to the tasty confectionary treats it produces. But there's so much more to know about this consumer staples giant, including that its dividend yield is historically high at 3.2% today. That suggests that the stock is on sale, something that doesn't happen very often.Can buying Hershey today help you build a million-dollar portfolio? Let's find out.A big drawdown at HersheyHershey's dividend yield is so high today because the stock ha ...

Investment Strategy - Prefers fundamental analysis over technical analysis, focusing on actual company results rather than price movements [1] - Mainly invests in stocks and ETFs, with a preference for US companies but also analyzes European and Chinese companies [1] - Takes a long-term view on investments, often adopting a contrarian approach [1] Sector Focus - Highly interested in the banking sector, believing it is fundamental to understanding the health of an economy [1] - Also interested in Macroeconomics [1]

In mid-December, some Hershey (HSY -0.74%) investors might have thought their Christmas was coming early. A media report stated that a deep-pocketed suitor had made a preliminary offer to buy out the company. If accepted, Hershey was sure to fetch a sweet premium, given its high-profile brand name and its portfolio of familiar brands, including its namesake chocolate bars, Reese's Peanut Butter Cups, and other goodies. The stock's rally lasted about as long as a hunk of chocolate placed on a live radiator. ...

When you buy a stock, you buy an ownership stake in a business. It might be a small stake for most people, but with sufficient resources, it's possible to buy enough shares to actually control the entire company. In fact, there are many examples of wealthy investors doing this in the past.However, when it comes to candy giant The Hershey Company (HSY -0.46%), it doesn't matter how many shares an investor buys because there's an entity called the Hershey Trust Company that maintains control of the business. ...

The start of December 2024 brought a story that some investors were already expecting to see, just not in the way that it happened. Despite rising cocoa prices and a seeming disinterest in consumer staples stocks, shares of Hershey Co. NYSE: HSY rallied on some unexpected news. For those who understand a value investment, the news of a potential takeover bid was nothing out of the ordinary. Hershey TodayHSYHershey$183.01 -0.94 (-0.51%) 52-Week Range$168.16▼$211.92Dividend Yield2.99%P/E Ratio21.08Price Targ ...

Key TakeawaysHershey shares fell as traders digested updates suggesting that it was unlikely to merge with Mondelēz International.Mondelēz said it was focused on purchases that are easier to pull off, and Bloomberg reported its bid was rejected as too low.The candy company previously rebuffed an acquisition offer from Mondelēz in 2016. Hershey (HSY) shares fell Wednesday as traders absorbed news that the candy giant might be less likely to merge with Mondelēz than first thought. Mondelēz International (MDLZ ...

The Hershey Company (HSY) has faced challenges, with its stock dropping 11% over the past three months as it continues to be impacted by a more budget-conscious consumer base and historically high cocoa prices. During this period, HSY's stock has underperformed the broader industry, which saw a 7.6% decrease, as well as the Zacks Consumer Staples sector, which fell by 3.6%. In contrast, the S&P 500 saw a 6.2% increase over the same timeframe.Let's take a closer look at the key factors negatively impacting H ...