The Hershey Company (NYSE:HSY) has been demonstrating a strong financial performance with its recent reported EPS beating analyst expectations by 43%. The company's First-Quarter 2024 financial results were satisfactory, and they have maintained their net sales and earnings outlook for the year. A new dividend of $1.37 per share has also been declared. Concurrently, the company is making notable strides in innovation with the release of vegan chocolate in Canada. The company is generally well-backed, with institutional owners holding 85% of the company. Despite a 20% dip in the past 6 months, institutional investors remain positive, drawn by its strong Q1 report, impressive sales growth of 8.9%, and undervaluation of the stock.
The company's dividend portfolio presents a lucrative investment. The stock's intrinsic value suggests a possible undervaluation by 22 and 23%. Despite this, getting the company's stock cheaply is deemed improbable. Hershey Company's Q1 surpassed expectations due to positive price realization, yet the company is increasing automation, potentially leading to job losses. Nonetheless, the company has a strong upside potential, with a 30% price increase is expected. Concurring with this is the company's resilient position in the midst of the cocoa crisis. The company is expected to emerge stronger despite upheavals in cocoa prices.
The Hershey Company HSY News Analytics from Tue, 11 Jul 2023 07:00:00 GMT to Tue, 07 May 2024 11:17:38 GMT - Innovation 6 - Information 8 - Rumor -3
