Hershey-3 Beaten-Down Stocks That Haven't Been This Cheap in More Than 3 Years: Are They Bargain Buys?

Stocks Trading Near Multi-Year Lows - Stocks trading near multi-year lows may present buying opportunities for long-term investors, but they often indicate significant business challenges [1][2] - Three stocks currently trading near multi-year lows are Hershey, PepsiCo, and Moderna [3] Hershey (HSY) - Hershey is trading near its 52-week low, with the last time it was cheaper being early 2021, marking a near four-year low [4] - Sales for the first nine months of 2024 totaled $8.3 billion, declining by over 2%, while earnings of$ 1.4 billion fell by 6% [5] - The company faces challenges from higher cocoa prices and a tough macroeconomic environment, leading to cost-control measures [5] - Hershey trades at 18 times trailing earnings, with a payout ratio of around 60% and a dividend yield of 3.6%, higher than the S&P 500 average of 1.3% [6] - The company owns strong brands like Reese's and Twizzlers, making it a potential long-term investment for patient dividend investors [6] PepsiCo (PEP) - PepsiCo is also experiencing slowing demand, with net revenue of $64.1 billion for the 36-week period ending Sept 7, 2024, up just 0.7% year-over-year [7] - Earnings per share grew by 4%, but declining volumes offset the impact of price increases [7] - The stock is trading at levels not seen since mid-2021, with a trailing earnings multiple of 22 and a dividend yield of 3.7% [8] - PepsiCo is a Dividend King, having raised its dividend for 52 consecutive years, making it attractive for long-term investors despite short-term challenges [8][9] - The company's diversified portfolio of snack and beverage brands positions it well for a potential long-term recovery [9] Moderna (MRNA) - Moderna has effectively given back all its pandemic-related gains and is now trading at April 2020 levels [10] - The company faces uncertainty due to declining COVID-related sales and a lack of clarity on its future growth prospects [11] - Moderna's market cap is$ 13 billion, but its valuation could decline further as it struggles to grow operations and achieve profitability [11] - The company reported a $2.7 billion loss from operations in the first nine months of 2024, an improvement from a$ 4.2 billion loss in the prior-year period [12] - Moderna is in cost-cutting mode and has reduced its guidance, making it a risky investment until it demonstrates consistent growth and profitability [12]