Core Insights - Hershey has recently increased prices across its confectionery portfolio, and consumer response was more favorable than anticipated [1] Company Summary - The price hike by Hershey did not deter consumers as much as expected, indicating strong brand loyalty and demand for its products [1] Industry Summary - The confectionery industry appears resilient to price increases, suggesting that consumers may prioritize indulgent treats even in inflationary environments [1]

Core Viewpoint - Hershey's shares are now considered to have a "compelling" risk/reward profile due to improved market trends and cost pressures already being priced in, prompting Goldman Sachs to upgrade the stock from Sell to Buy with a 30% price target increase [2] Company Summary - Goldman Sachs has given Hershey a double upgrade, reflecting confidence in the company's future performance [2] - The stock's new rating indicates a positive outlook for Hershey amidst favorable market conditions [2] Industry Summary - The overall market trends are improving in favor of Hershey, suggesting a potential recovery or growth in the confectionery sector [2] - Cost pressures that previously affected the industry are now seen as already accounted for in the stock price, indicating a stabilization in the market [2]

Upgrades - Loop Capital upgraded Union Pacific (UNP) to Hold from Sell with a price target of $227, increased from $214, noting shares are down 5% year-to-date and valuation multiples are modestly above five-year lows [2] - BofA upgraded Prologis (PLD) to Buy from Neutral with a price target of $130, up from $118, citing improved lease conversion rates in Q3 compared to Q2 and positive demand-supply dynamics expected through 2026 [3] - Goldman Sachs upgraded Hershey (HSY) to Buy from Sell with a price target of $222, raised from $170, highlighting a compelling risk/reward scenario after multiple guidance reductions [4] - Arete upgraded Baidu (BIDU) to Buy from Sell with a price target of $143, emphasizing the potential of Baidu's Kunlun chip venture to offset challenges in its online advertising business [5] - Citizens JMP upgraded CoreWeave (CRWV) to Outperform from Market Perform with a price target of $180, projecting growth of its GPU-as-a-service business to an estimated $300 billion from $3 billion to $4 billion currently [4] Downgrades - TD Cowen downgraded Warner Bros. Discovery (WBD) to Hold from Buy with an unchanged price target of $14, expressing concerns about the stock's risk/reward after a recent rally [6] - Rothschild & Co Redburn downgraded Live Nation (LYV) to Neutral from Buy with a price target of $170, up from $144, indicating slower margin expansion and reduced earnings upside potential [6] - Stifel downgraded VF Corp. (VFC) to Hold from Buy with a price target of $16, increased from $15, stating that the stock's risk-reward is now balanced after a 12.5% one-month return [6] - JPMorgan downgraded Camp4 Therapeutics (CAMP) to Neutral from Overweight without a price target, noting early-stage challenges in its lead program despite a cash runway into 2027 [6] - JPMorgan downgraded Neumora Therapeutics (NMRA) to Underweight from Neutral without a price target, citing a failed Phase 3 trial for its treatment in major depressive disorder [6]

Core Viewpoint - Hershey shares experienced a 3% increase in premarket trading following a double upgrade from Goldman Sachs, which raised its rating from sell to buy and increased its price target from $170 to $222 [1] Company Summary - Goldman Sachs issued a rare double upgrade for Hershey, indicating a significant shift in sentiment towards the chocolate maker [1] - The new price target of $222 represents a substantial increase from the previous target of $170, reflecting positive expectations for the company's future performance [1]

EDEN PRAIRIE, Minn., Sept. 09, 2025 (GLOBE NEWSWIRE) -- Winnebago Industries, Inc. (NYSE: WGO), a leading outdoor recreation product manufacturer, will debut several new models and cutting edge innovations across its industry-leading lineup of premium RV brands at the Hershey RV Show in Hershey, Pa., Sept. 10-14, 2025. Winnebago Industries’ brands will feature over 120 models, host test drive opportunities and have experts on site to help attendees select the perfect RV for their next adventure. “Each of ou ...

Core Insights - Investors are increasingly looking to dividends for current income, especially during uncertain times, with ETFs providing efficient options for income generation [1] - The Fidelity High Dividend ETF (FDVV) has shown strong performance potential alongside its income stability, with a year-to-date return of 10.89% [2][3] ETF Performance - FDVV charges a low fee of 16 basis points and tracks the Fidelity High Dividend Index, focusing on a smaller group of large- and midcap dividend providers [2] - The fund has a distribution yield of 2.97% and a 30-day SEC Unsubsidized Yield of 2.78% as of August 25, indicating its ability to provide current income [3] Notable Stocks - The Hershey Co. (HSY) has delivered an 8.6% return year-to-date, with a return on equity of 34.6% and a year-over-year revenue growth of 26% [4] - AES Corp. (AES) has seen a significant return of 29.7% over the last three months, following a 5.6% year-to-date performance, highlighting its appeal in the utilities sector [5] - Citigroup (C) has achieved a 34.4% return year-to-date, supported by a five-year revenue growth of 10.55% [6] Investment Outlook - FDVV is positioned as a dividends ETF that offers more than just fixed income, making it a compelling option for investors seeking both income and growth potential [6]

Core Insights - The Hershey Company is enhancing its focus on efficiency through its Advancing Automation and Agility (Triple A) transformation program, now expecting $150 million in net savings for the year, an increase from the previous forecast of $125 million, and raising the three-year target to $400 million from $350 million [1][9] Group 1: Cost Management and Efficiency - A key initiative, Smart Complexity, aims to simplify packaging and product assortments, streamline manufacturing, and utilize technology-enabled automation, which is expected to reduce costs and create efficiencies for both the company and its retail partners [2] - Hershey's execution on cost management is ahead of schedule, showing visible improvements in manufacturing and administrative efficiency, indicating confidence in achieving higher productivity than initially anticipated [4] Group 2: Margin Pressures and Recovery Strategies - Hershey's adjusted gross margin decreased by 510 basis points to 38.1% in Q2 2025 due to cocoa inflation and tariffs impacting profitability, with the expanded savings pipeline intended to help offset these pressures and support margin recovery [3] - Management believes that combined pricing actions, procurement strategies, and productivity initiatives could restore over 500 basis points of adjusted gross margin by 2026 [3][9] Group 3: Market Performance and Valuation - Hershey's shares have declined by 2.3% over the past month, underperforming the industry decline of 1.5% and the broader Consumer Staples sector and S&P 500 index growth of 1.7% and 2%, respectively [5] - The company currently trades at a forward 12-month P/E ratio of 29.09, which is higher than the industry average of 23.49 and the sector's 17.12, indicating a premium valuation relative to peers and reflecting market expectations regarding its business stability [10]

Core Insights - The article emphasizes the importance of understanding macro trends and their influence on asset prices and investor behavior [1] - It highlights the author's extensive experience in asset management, particularly in equity analysis and research [1] Group 1: Professional Background - The author has over 10 years of experience in asset management, focusing on equity analysis, macroeconomics, and risk-managed portfolio construction [1] - The professional background includes advising on and implementing multi-asset strategies, with a strong emphasis on equities and derivatives [1] Group 2: Investment Philosophy - The article promotes the idea that investing should be accessible, inspiring, and empowering for all investors [1] - It encourages collaboration among investors to build confidence in long-term investing [1]

Group 1 - Major consumer brands are facing a shift in their traditional pricing and marketing strategies due to rising costs and changing market conditions, leading to a reduction in marketing budgets despite increasing product prices [1][4] - Companies like Church & Dwight typically allocate around 11% of net sales to marketing expenses, but this trend is changing as brands are forced to do more with less [1][5] - The candy industry, particularly with products like Ferrara's Nerds Gummy Clusters, is seeing a shift towards higher profit margin products, prompting increased investment in marketing for these items despite initial poor market data [2][4] Group 2 - Cocoa prices have surged from a historical range of $2,000 to $3,000 per ton to between $8,000 and $12,000 due to poor harvests and economic pressures, impacting the profitability of chocolate products [4][5] - Hershey's CFO indicated that price increases alone are insufficient to cover cocoa inflation costs, leading the company to explore cost-cutting measures and focus on non-chocolate product marketing [5][6] - Procter & Gamble is shifting its strategy from increasing advertising spending to relying on product innovation and packaging improvements, planning to cut $500 million to $700 million from its marketing budget annually [6][8] Group 3 - Brands are increasingly using pricing strategies rather than marketing investments to drive growth, with a focus on targeted pricing approaches [8] - The Trade Desk, which primarily serves large clients, is experiencing pressure as these clients reduce advertising budgets due to tariffs and policy changes, highlighting the challenges faced by the advertising industry [8][9] - The overall outlook for the advertising industry appears challenging, with expectations of difficulties persisting for at least a year [9]

Economic Overview - The U.S. economy faced significant volatility with mixed signals, as major indexes like the S&P 500 and Dow Jones increased by 0.28% and 1.60%, while the Nasdaq Composite decreased by 0.62% [1] - The Federal Reserve Chair Jerome Powell suggested the possibility of an interest rate cut as early as September during the Jackson Hole symposium [1] Labor Market Concerns - A slowing labor market is a primary concern for the Federal Reserve, with recent data showing a downward revision of job growth in May and June, and only 73,000 jobs added in July [2] - Despite strong Q2 GDP numbers, labor market and manufacturing data indicate a potential economic slowdown, presenting a dilemma for the Fed between supporting the job market and combating inflation [2] Zacks Research Performance - WisdomTree, Inc. shares increased by 28% since being upgraded to Zacks Rank 2 (Buy) on June 23, outperforming the S&P 500's 8.7% gain [4] - Hafnia Limited shares rose by 14.1% after a Zacks Rank 2 upgrade on June 25, also surpassing the S&P 500's 6.4% increase [5] - A hypothetical portfolio of Zacks Rank 1 stocks returned +20.65% in 2023, compared to +24.83% for the S&P 500 index [6] Focus List and Model Portfolios - The Zacks Focus List portfolio returned +10.91% in 2025 (through July 31) compared to +8.59% for the S&P 500 index [12] - The Top 10 portfolio has delivered a cumulative return of +2,220.4% since 2012, significantly outperforming the S&P 500 index's +517.8% return [24] Sector-Specific Performance - Johnson & Johnson and The Hershey Company, part of the Earnings Certain Dividend Portfolio, returned 17.2% and 16.8% respectively over the past 12 weeks, driven by investor interest in quality dividend stocks amid market volatility [19] - Mettler-Toledo International Inc. and PepsiCo, part of the Earnings Certain Admiral Portfolio, saw returns of 18.6% and 15.7% over the past 12 weeks [15]