Core Insights - The article highlights three top consumer brands offering attractive dividend yields ranging from 2.91% to 4.89%, presenting opportunities for passive income amidst market volatility [1]. Company Summaries - **Constellation Brands**: - Forward dividend yield is 2.91% - Shares have decreased by 49% from recent highs due to macroeconomic challenges, presenting a buying opportunity - The company owns popular Mexican beer brands, including Modelo and Corona, with new product Corona Sunbrew becoming the top new beer brand in the U.S. [3][4] - **Hershey**: - Forward dividend yield is 2.97% - Stock has fallen by 33% from previous highs due to record cocoa prices and poor harvests, making it a good buying opportunity - Hershey has a strong brand presence with top products like Reese's, contributing to an $11 billion snack business, and has paid dividends for 95 years, indicating financial stability [5][6][7][8] Market Context - Both Constellation Brands and Hershey are facing near-term challenges but have profitable businesses that support their dividend payments, making them attractive for income investors [7].

Core Insights - The Hershey Company is a leading U.S. confectionery and snacks manufacturer with a market capitalization of approximately $37.3 billion, selling products in around 85 countries [1] - Analysts expect Hershey to report a fiscal Q3 2025 profit of $1.08 per share, a significant decline of 53.9% from $2.34 per share in the same quarter last year [2] - For fiscal 2025, the projected EPS is $5.93, down 36.7% from $9.37 in fiscal 2024, but expected to rebound to $6.65 in fiscal 2026, reflecting a year-over-year growth of 12.1% [3] Stock Performance - Hershey's shares have gained marginally over the past 52 weeks, underperforming the S&P 500 Index's 14.5% increase but outperforming the Consumer Staples Select Sector SPDR Fund's 2.8% decline [4] - The stock has experienced weak performance due to rising raw material costs, particularly cocoa prices, which have pressured margins and challenged demand sustainability amid price increases [5] Analyst Ratings - The consensus rating for Hershey's stock is cautious, with a "Hold" rating overall; among 22 analysts, three recommend a "Strong Buy," 16 suggest a "Hold," and three advise a "Strong Sell" [6] - The average analyst price target for Hershey's stock is $190.67, indicating a modest upside potential of 3.5% [6]

Group 1 - AI is recognized as the leading theme at SPARK Talent 2025, highlighting its potential to enhance recruiting efficiency and reduce costs for organizations [1] - HR leaders face challenges in demonstrating the value of AI to C-suite executives, despite growing acceptance among talent acquisition professionals [1] Group 2 - Debra Simmers, Global Head of Talent Acquisition at The Hershey Company, discussed strategies for gaining executive support for AI in talent acquisition during a case study at SPARK TALENT [2] - Simmers emphasized the importance of influencing executive buy-in for AI and related platforms in her session [2]

Core Insights - Goldman Sachs has added four new stocks to its Conviction List, which are expected to have double-digit upside potential and three of which offer reliable dividends [4][5][6]. Group 1: Goldman Sachs Conviction List - The Conviction List is a curated selection of stocks that Goldman Sachs analysts believe will outperform the market, focusing on themes like artificial intelligence and sustainability [2][4]. - The four new stocks added in October are Abbott Laboratories, Air Products and Chemicals, Hershey, and Madison Square Garden Entertainment [5][6]. Group 2: Stock Details - **Abbott Laboratories**: Offers a 1.74% dividend with a target price of $157, indicating a potential 17% gain [7][8]. - **Air Products and Chemicals**: Provides a 2.63% dividend and has a target price of $335, suggesting a 23% upside [9][15]. - **Hershey**: Features a 2.82% dividend with a target price of $222, representing a potential 19% gain [16][20]. - **Madison Square Garden Entertainment**: A live entertainment company with a target price of $52, indicating a 15% upside [21][23].

Economic Indicators - China's September exports rose by +8.3% year-on-year, exceeding expectations of +6.6% and marking the largest increase in six months [1] - September imports in China increased by +6.4% year-on-year, surpassing expectations of +1.8% and representing the largest rise in 17 months [1] Market Reactions - Stock indexes experienced a sharp rise on Monday, recovering some losses from the previous Friday's plunge, driven by a softening of the Trump administration's rhetoric towards China [5][6] - The S&P 500 Index closed up +1.56%, the Dow Jones Industrials Index rose by +1.29%, and the Nasdaq 100 Index increased by +2.18% [6] Corporate Earnings - More than 22% of S&P 500 companies provided guidance for Q3 earnings that are expected to exceed analysts' expectations, the highest in a year [10] - Q3 profits are projected to rise by +7.2%, the smallest increase in two years, while sales growth is expected to slow to +5.9% from 6.4% in Q2 [10] Sector Performance - Chipmakers and AI infrastructure stocks rallied, with Broadcom's shares jumping over +9% following a multi-year agreement with OpenAI [5][15] - Rare earth stocks surged due to tensions between China and the US, with Critical Metals closing up more than +53% [17] - Mining stocks also increased as gold prices rose more than +3% to an all-time high, benefiting companies like Coeur Mining and Newmont [18] Upcoming Events - The market will focus on trade or tariff news and attempts to reopen the government, with major banks set to release Q3 earnings results [9]

Group 1: Government Shutdown and Economic Impact - The government shutdown continues with no resolution in sight, affecting around 750,000 federal employees and delaying key economic reports [3][11] - The shutdown has led to the postponement of important inflation reports, which could impact market sentiment [3][10] Group 2: China's Crackdown on Tech Companies - China is intensifying its scrutiny of American tech firms, with Qualcomm being investigated for alleged anti-monopoly violations, resulting in a stock decline of over 2% [2] - Beijing is also enforcing stricter controls on Nvidia AI chips, mobilizing customs officers to prevent major tech firms from purchasing these products [4][5] Group 3: Commodity Prices and Market Reactions - Oil prices fell by approximately 1.6% following a ceasefire agreement between Israel and Hamas, reducing market risk premiums [6] - Gold prices have fluctuated but remain above $4,000, indicating ongoing investor interest amid geopolitical tensions [7][48] Group 4: Consumer Sentiment and Economic Indicators - Preliminary consumer sentiment for October is forecasted to drop to 54, reflecting concerns over inflation and the job market [10] - The dollar has shown some strength against major peers, hovering near a two-month high, although analysts suggest this may not be sustainable due to ongoing economic risks [12][13] Group 5: Upcoming Earnings Season - The upcoming earnings season is anticipated to be significant, with major banks like JP Morgan and Goldman Sachs set to report [52] - Analysts are preparing for potential market reactions based on earnings reports, emphasizing the importance of understanding key financial metrics [20][21] Group 6: Chocolate Price Increases - Chocolate prices are rising significantly due to a 12.9% yearly drop in global cocoa output and new tariffs on key producers, leading to price hikes from major brands [45][46] - The cocoa market is expected to continue expanding at around 5% annually, indicating sustained demand despite higher prices [46] Group 7: Stock Market Movements - Levi Strauss raised its full-year outlook but saw a stock decline due to concerns over margin pressure and tariffs [32] - Regetti's stock surged over 80% this quarter, driven by speculation around AI infrastructure spending, although analysts remain cautious about cash burn [35] - Samsung's stock has risen over 30% this month, reflecting a successful push into chips and AI infrastructure [37]

Company Performance - Hershey's stock closed at $192.58, reflecting a -1.52% change from the previous day's closing price, underperforming the S&P 500's loss of 0.28% [1] - Over the past month, Hershey's stock has increased by 5.37%, outperforming the Consumer Staples sector's decline of 3.78% and the S&P 500's gain of 4.03% [1] Upcoming Earnings - Hershey is set to announce its earnings on October 30, 2025, with an expected EPS of $1.07, which represents a decline of 54.27% from the same quarter last year [2] - The consensus estimate for quarterly revenue is $3.11 billion, indicating a growth of 4.1% compared to the previous year [2] Fiscal Year Estimates - For the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.91 per share and revenue of $11.51 billion, reflecting changes of -36.93% and +2.78% respectively from the prior year [3] - Recent changes to analyst estimates for Hershey may indicate shifting business dynamics, with positive adjustments suggesting a favorable outlook on business health and profitability [3] Valuation Metrics - Hershey's current Forward P/E ratio is 33.07, which is a premium compared to the industry average Forward P/E of 22.41 [6] - The company has a PEG ratio of 4.72, higher than the average PEG ratio of 3.55 for the Food - Confectionery industry [7] Industry Context - The Food - Confectionery industry is part of the Consumer Staples sector and currently holds a Zacks Industry Rank of 212, placing it in the bottom 15% of over 250 industries [8] - The Zacks Industry Rank assesses the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Group 1 - The article discusses the trend of chocolate products being reformulated with less chocolate content due to rising cocoa prices and supply shortages caused by adverse weather and agricultural issues in West Africa [1][2] - Candy manufacturers are innovating to appeal to younger consumers, particularly Generation Z and Millennials, by introducing new flavors and nostalgic products while masking the reduction in chocolate content as a creative strategy rather than a cost-saving measure [1][2] - The cocoa crisis has led to a notable increase in the popularity of non-chocolate candy options, such as gummies, which are not affected by cocoa supply issues, indicating a shift in consumer preferences [3] Group 2 - Cocoa prices have surged dramatically, reaching a historical high of $12,000 per ton, significantly above the long-term average of $4,000 per ton, prompting manufacturers to adjust their product offerings [2] - Some companies are responding to the cocoa crisis by producing smaller-sized candy products, which contain less chocolate, as a way to manage costs while still meeting consumer demand [2] - Despite the ongoing cocoa crisis, consumer demand for sweets remains strong, particularly during seasonal events like Halloween, where variety and quantity are prioritized over chocolate content [3]

Core Insights - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions, highlighting the inherent risks involved in trading [3]. Company and Industry Analysis - The analysis is intended for informational purposes only and does not constitute professional investment advice, indicating a focus on providing insights rather than direct recommendations [3][4]. - There is a clear distinction made between the opinions expressed in the article and those of Seeking Alpha as a whole, suggesting that the views may not represent a consensus within the platform [4].

Core Insights - The Hershey Company will present product innovations and growth strategies at the 2025 NACS Show Expo, highlighting the Reese's OREO® Cup and new offerings in its snacking portfolio [1][3] - The company aims to leverage data-driven insights to enhance bundling strategies, promotional tactics, and merchandising approaches to boost sales in convenience stores [1] Product Innovations - The Reese's OREO® Cup combines milk chocolate and white creme with OREO® cookie crumbs, expected to be one of the biggest launches for Reese's [4] - New products include Jolly Rancher Ropes in tropical flavors, Shaq-A-Licious XL Gummies in sneaker shapes, Dot's Homestyle Pretzels in buffalo flavor, and reformulated SkinnyPop Popcorn [2][4] - Hershey's sweets business has grown by 23.2% in 2025, with Jolly Rancher and Shaq-A-Licious XL Gummies being among the fastest-growing non-chocolate confectionery brands in convenience stores [2][4] Sales Performance - Hershey's salty brands have seen a 9.5% year-to-date sales increase in convenience stores, outpacing the total category [4][8] - Dot's Homestyle Pretzels is the number one pretzel franchise in convenience stores, growing by 16.4% in the past year [4] - SkinnyPop Popcorn is the second-largest branded popcorn in convenience stores [4] Growth Strategies - The company emphasizes optimizing salty snacks assortment by stocking top-performing SKUs and using vertical merchandising to enhance visibility [5] - Fast-growing brands like Jolly Rancher and Shaq-A-Licious XL Gummies are driving Hershey's non-chocolate confectionery growth, with strategic acquisitions aimed at appealing to Gen Z shoppers [6] - The Everyday Multiples (EDM) strategy encourages multi-unit purchases by bundling low-cost items, resulting in a 56% average unit lift from confectionery promotions in convenience stores [7][11] Event Details - The NACS Show Expo 2025 will take place from October 15-17, 2025, in Chicago, IL, with Hershey's booth located at S5706 [3][8]