3 Reasons Why Hershey Stock Is A Buy

Jul. 29, 2022 1:03 PM ETThe Hershey Company (HSY)3 Comments
Bela Lakos profile picture
Bela Lakos
701 Followers

Summary

  • Hershey stock has performed well during times of low consumer confidence in the last 20 years.
  • It offers safe and sustainable dividend payments at a fair price.
  • It reported strong Q2 results combined with an improved financial outlook for the rest of 2022.
  • The firm is expected to be relatively unaffected by the strong U.S. Dollar.
  • We currently rate HSY's stock as "buy".

Street Lights Shaped Like Chocolate Kisses

gsheldon/iStock Editorial via Getty Images

Hershey (NYSE:HSY) stock has performed exceptionally well in 2022, outperforming the broader market by about 30% year-to-date.

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Data by YCharts

In our opinion, this outperformance is likely to last in the near term for three important

line chart confidence

U.S. Consumer confidence (Tradingeconomics.com)

Chart
Data by YCharts

Chart
Data by YCharts

Chart
Data by YCharts

Barnhart dividend

Dividend history (seekingalpha.com)

table wacc

WACC (finbox.com)

table dividend growth

Dividend growth (seekingalpha.com)

tableofresults

Results (Author)

table guidance

Guidance (Hershey)

barchartnetsales

Net sales of Hershey by region (statista.com)

This article was written by

Bela Lakos profile picture
701 Followers
Petroleum engineer with an enthusiasm for investing, accounting and personal finances.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Past performance is not an indicator of future performance. This post is illustrative and educational and is not a specific offer of products or services or financial advice. Information in this article is not an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. This article has been co-authored by Mark Lakos.

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