Why Wall Street Has Been Too Bearish On Hershey
Summary
- Hershey stock has underperformed in 2024, but my DCF model suggests a potential upside of 34.50% to 58% from current levels.
- Rising cocoa prices and changing consumer behaviors have impacted Hershey, but product diversification into non-chocolate snacks offers growth potential.
- Hershey’s current 3.29% dividend yield provides a “get-paid-while-you-wait” scenario for investors, enhancing its attractiveness.
- Despite recent headwinds, the company's strong brand and strategic acquisitions position it well for a rebound and long-term growth.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of VOO either through stock ownership, options, or other derivatives. 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.
I own shares of Hershey's through the VOO S&P 500 index ETF.
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