There have been multiple upgrades for Hershey (NYSE:HSY). That got me to looking at the stock and the reasons why. Historically Hershey goes up this time of year due to what I call the Valentine affect. Where candy stocks go up during Valentines. There have been some other developments with Hershey as well.
Janney Upgraded ST to a BUY. citing increased marketing and cost cutting. With the Launch of the Mini - Reese’s launch at the CES is a direct reflection of this.
HSY is ranked as a safe stock to own; with a 2.8 % dividend and I believe it is undervalued at it current price.of $48.10. With all the marketing and the Cost Cutting, the stock could see a swing upward in the coming months.
A good way to play this Stock would be a buy write. Buy the Stock and sell an out of the money call option about 90 days out. you collect the premium and have a good stock through the first quarter of the year.
Disclosure: I am long HSY.