DailyIQ
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Sector:Consumer DefensiveAll sectors
Last updated4 minutes ago

HSY·The Hershey Company

$189.96
+3.50 (+1.88%)
Overnight$189.94-0.02 (-0.01%)
High
$190.25
Open
$187.98
Market Cap
37.34B
52W High
$239.48
Low
$186.50
P. Close
$189.96
P/E
31.88
52W Low
$161.43
Fwd P/E
18.89
DailyIQ Est.
-
Inst. Ownership
30.3%
Short Interest
4.15%
Technical Score (1D)
77
BUY
News Sentiment
50
MIXED
RBC has trimmed Hershey’s price target to $206 from $212 while maintaining a sector‑perform rating, reflecting a more conservative view of the company’s growth prospects and margin pressures. This downgrade signals that analysts expect tighter earnings growth, which could compress the stock’s trading range in the next 1–10 trading days. Investors will likely reassess the risk‑reward profile, potentially influencing institutional allocation decisions. The change follows Hershey’s recent launch of its largest Halloween portfolio yet, adding over 20 new chocolate, candy, and salty snack items driven by data‑ and AI‑powered development. The seasonal expansion aims to broaden the brand’s reach beyond traditional chocolate into better‑for‑you and salty snacks, supporting the company’s innovation narrative. Analysts note that this launch does not materially alter near‑term risks such as high cocoa costs or tariff headwinds, so the core risk profile remains unchanged. However, the valuation gap highlighted by analysts—market price versus a fair‑value estimate—adds pressure to justify the higher price amid the new product push. Over the next 1–10 trading days, watch how the price target adjustment and the Halloween launch influence short‑term volatility and trading ranges. Pay attention to any earnings guidance that incorporates the new product mix and margin expectations, as it will clarify whether the company can sustain the expanded portfolio. Also monitor any commentary from RBC or other analysts on whether the price target will be revisited as the holiday season approaches.
Earnings Summary
The Hershey Company, a global confectioner with a diversified portfolio of chocolate, non‑chocolate candies, gum, mints, and salty snacks, operates through North America Confectionery, North America Salty Snacks, and International segments, positioning it firmly within the consumer defensive confectioners sector. In the most recent two quarters, Q1 2026 and Q2 2026, Hershey’s earnings displayed a mixed pattern: Q1 2026 EPS of $2.35 beat the $2.049 estimate while revenue of $3.104 B surpassed the $3.026 B forecast; Q2 2026 EPS of $1.90 fell short of the $2.267 estimate, yet revenue of $2.787 B still outpaced the $2.660 B expectation, indicating a slight revenue deceleration relative to Q1 2026 but an overall upward trend from Q4 2025. Compared to the prior two quarters (Q3 2025 and Q4 2025), both of which saw EPS and revenue beats, the latest period shows a shift toward a single EPS miss, though revenue growth remains consistent, with Q4 2025 revenue at $3.091 B and Q4 2026 at $3.104 B, a modest YoY increase of roughly 0.4% after a 7.5% jump in 2025 versus 2024. Historically, Hershey has delivered revenue growth each year while EPS has fluctuated, with notable EPS beats in all quarters except Q2 2026, suggesting that revenue expansion does not always translate into earnings gains, likely due to cost pressures. Recent news highlights a Rothschild & Co upgrade to a $170 target, citing margin improvement and product portfolio expansion, alongside management’s emphasis on price realization and supply‑chain efficiencies in the Q2 2026 earnings call, tempered by raw‑material inflation and volume weakness concerns; these developments underscore the company’s focus on sustaining higher‑margin mix while navigating commodity headwinds. Investors should watch the forthcoming Q3 2026 guidance for clarity on whether the supply‑chain gains and price‑realization narrative will materialize into sustained margin expansion, monitor raw‑material cost trends and volume dynamics, and assess how the company’s shift toward lower‑cost snack products may buffer against chocolate‑market volatility.}}

EPS

EstBeatMiss
$0.80$1.24$1.68$2.11$2.55Q2'25Q3'25Q4'25Q1'26Q2'26Q3'26
QtrEstActual+/−
Q3'26$2.12 - -
Q2'26$2.27$1.90-16.2%
Q1'26$2.05$2.35+14.7%
Q4'25$1.42$1.71+20.6%
Q3'25$1.06$1.30+22.2%
Q2'25$1.00$1.21+20.4%

Revenue

EstBeatMiss
$2.5B$2.7B$2.9B$3.1B$3.4BQ2'25Q3'25Q4'25Q1'26Q2'26Q3'26
QtrEstActual+/−
Q3'26$3.3B - -
Q2'26$2.7B$2.8B+4.8%
Q1'26$3.0B$3.1B+2.6%
Q4'25$3.0B$3.1B+2.7%
Q3'25 - $3.2B -
Q2'25 - $2.6B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

HSY Stock Snapshot

HSY is currently trading at $189.94, giving The Hershey Company a market cap of 37.34B and a P/E ratio of 31.9. Today's range spans $186.50–$190.25, with shares opening at $187.98 and moving down $0.02 (0.0%) from the prior close. DailyIQ's technical score sits at 77/100 (BUY) with a news sentiment reading of 50/100.

Over the past year HSY has traded between $161.43 and $239.48 - the current price is +17.7% off the 52-week low and -20.7% from the high.

The breakout geometry on HSY is constructive - price at $189.94 (in the lower half of its 52-week range in $161.43–$239.48), scoring 77/100 (BUY) with neutral sentiment (50/100). (P/E: 31.9) At 37.34B in Consumer Defensive market cap, technical breakouts through prior resistance at this capitalization tier tend to be better validated than in smaller-cap peers - institutional participation means that cleared levels attract follow-through buying rather than immediate fade behavior.

What makes HSY's BUY setup (77/100) particularly actionable at 37.34B in Consumer Defensive capitalization is the scale-to-move ratio: large enough to feature on institutional mandates but not so large that the percentage upside is already compressed by index inertia. At $189.94 (in the lower half of its 52-week range in $161.43–$239.48), with sentiment running neutral at 50/100, the setup rewards conviction-sized positioning more than it does speculative small bets.

Recent News Coverage

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