DailyIQ
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Sector:Consumer DefensiveAll sectors
Last updated 5 minutes ago

HSY·The Hershey Company

$.
+. (+.%)
After Hours
High
$176.52
Open
$171.35
Market Cap
35.29B
52W High
$239.48
Low
$170.46
P. Close
$174.79
P/E
32.26
52W Low
$161.29
Fwd P/E
17.71
DailyIQ Est.
$214.37
Technical Score (1D)
27
SELL
News Sentiment
45
MIXED
UBS has cut its price target for Hershey from $200 to $190 while keeping a neutral rating, signaling a modest downward outlook for the chocolate maker. The target reduction reflects UBS's reassessment of the company’s near‑term growth prospects, likely driven by concerns over margin pressure and competitive dynamics. This downgrade may temper bullish sentiment among investors, potentially leading to a more cautious trading stance in the next few days. The neutral rating suggests that UBS still sees Hershey as a stable play, but the lower target could prompt analysts to re‑evaluate their own forecasts. As a result, traders should monitor the company’s upcoming earnings release for any signs of revenue or margin improvement that could offset the revised outlook. Additionally, watch for any commentary from Hershey’s management on cost control initiatives or pricing power that could influence the price target narrative. Market participants will also be attentive to broader commodity price movements, particularly cocoa and sugar, which could impact Hershey’s cost base and thus its profitability. Finally, keep an eye on any changes in consumer demand trends in the confectionery sector, as shifts in discretionary spending could affect Hershey’s sales trajectory. In the next 1–10 trading days, the combination of UBS’s revised target and these watch items will shape the stock’s short‑term volatility and investor positioning.
Earnings Summary
HSY is a leading global confectioner that produces chocolate, non‑chocolate candies, gum, mints, and salty snacks, operating through North America Confectionery, North America Salty Snacks, and International segments. The company’s portfolio includes Hershey’s, Reese’s, and Kit Kat, and it sells in roughly 80 countries, giving it a strong defensive position in the consumer staples sector. In the most recent quarters, Hershey reported EPS of $1.71 in Q4 2025 and $2.35 in Q1 2026, both beating estimates of $1.42 and $2.05 respectively, while revenue rose from $3.091 B to $3.104 B, a 0.4% quarter‑over‑quarter increase after a 3% decline from Q3 2025. Compared with the prior two quarters—Q2 2025 EPS $1.21 and Q3 2025 EPS $1.30, with revenue jumping 21% from $2.614 B to $3.181 B—EPS growth accelerated by roughly 30% each quarter, and revenue growth has been volatile but overall upward, with a 37% YoY rise in EPS from Q4 2024 to Q1 2026. Historically, the company has consistently outperformed analyst expectations, with every quarter in the data set beating EPS estimates and revenue exceeding forecasts when estimates were available, indicating a pattern of strong earnings execution despite fluctuating sales volumes. Recent analyst commentary highlights margin pressure from rising commodity costs and weaker U.S. demand, with JPMorgan cutting its price target to $191 and noting potential margin constraints; these concerns are reflected in the company’s focus on cost containment and sales momentum in the U.S. confectionery segment. Investors should watch for detailed margin data in the upcoming earnings release, monitor U.S. confectionery sales momentum, and track commodity cost trends, as these factors will clarify whether the company can sustain its revenue growth and maintain the EPS beat pattern seen to date.

EPS

EstBeatMiss
$0.80$1.24$1.68$2.11$2.55Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$1.42 - -
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%
Q1'25$1.93$2.09+8.0%

Revenue

EstBeatMiss
$2.5B$2.7B$2.9B$3.1B$3.3BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$2.7B - -
Q1'26$3.0B$3.1B+2.6%
Q4'25$3.0B$3.1B+2.7%
Q3'25 - $3.2B -
Q2'25 - $2.6B -
Q1'25 - $2.8B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

HSY Stock Snapshot

HSY is currently trading at $174.72, giving The Hershey Company a market cap of 35.29B and a P/E ratio of 32.3. Today's range spans $170.46–$176.52, with shares opening at $171.35 and moving down $0.07 (0.0%) from the prior close. DailyIQ's technical score sits at 27/100 (SELL) with a news sentiment reading of 45/100.

Over the past year HSY has traded between $161.29 and $239.48 - the current price is +8.3% off the 52-week low and -27.0% from the high. 29 analysts cover the stock with a Hold consensus and a mean 12-month target of $213.48 (range $166.00–$255.00), implying upside of +22.2%.

Macro sensitivity explains some of HSY's bearish setup (27/100, SELL) - at 35.29B in Consumer Defensive market cap, interest rate shifts, currency moves, or commodity price changes can create fundamental headwinds that compound the technical deterioration. Sentiment: neutral (45/100). Price: $174.72 (near 52-week lows). The current P/E ratio stands at 32.3. Annual range: $161.29–$239.48. The question for investors is whether the macro driver is transient or structural - because the answer determines whether this is a tradeable dip or a deeper re-rating.

Analyst coverage for HSY becomes a double-edged factor in a SELL phase: at 35.29B in Consumer Defensive market cap, active coverage is high enough that downgrade risk is real and impactful. The 27/100 technical reading and neutral sentiment (45/100) at $174.72 (near 52-week lows) place the stock in the zone where one or two high-profile estimate cuts can convert a grinding decline into a sharper re-rating — the $161.29–$239.48 range establishes where that repricing lands.