ZACKS·2026-03-16 20:16Core Insights - The article emphasizes that amidst the AI trend in 2026, traditional companies like Hershey and PepsiCo have outperformed the S&P 500, highlighting the value of established businesses over flashy tech stocks [1][6]. Hershey Company - Hershey is the largest chocolate manufacturer in North America and a global leader in confectionery, currently holding a Zacks Rank 2 (Buy) [2]. - The company's earnings outlook for the current and next fiscal year has improved significantly, indicating strong momentum [2]. - Hershey has exceeded earnings and revenue estimates for three consecutive quarters, contributing to its positive performance [3]. - The stock offers an attractive annual yield of 2.7%, compared to the S&P 500's yield of 1.1%, making it appealing for income-focused investors [3]. PepsiCo - PepsiCo is a well-established company involved in the manufacturing and distribution of snack foods and beverages [8]. - Although revisions for its current and next fiscal year are slightly below last year's levels, the stability of these revisions since June has alleviated concerns [9]. - PepsiCo reported a 15% year-over-year growth in EPS, driven by improved operational efficiencies [9]. - The company is recognized as a Dividend King, having increased its dividend payouts for over 50 consecutive years, with a current yield of 3.6% [10].