Is Hershey Company Stock Underperforming the Dow?
With a market cap of $33.8 billion, The Hershey Company (HSY) engages in the manufacture and sale of confectionery products and pantry items worldwide. Based in Hershey, Pennsylvania, the company operates through North America Confectionery, North America Salty Snacks, and International segments.
Companies valued at $10 billion or more are generally described as “large-cap stocks”, and Hershey fits this criterion perfectly. The company offers chocolate and non-chocolate confectionery, gum and refreshment products, protein bars, spreads, snack bites, and mixes, as well as pantry and food service lines. It combines strong brand recognition with a growing focus on digital marketing and supply chain modernization.
Hershey Company currently trades nearly 19% below its 52-week high of $208.03 recorded on Dec. 9, 2024. HSY's stock has declined 9.6% over the past three months, lagging behind the broader Dow Jones Industrials Average's ($DOWI) 2.3% gain.
Longer term, Hershey stock has dipped marginally on a YTD basis, whereas DOWI has increased marginally. Additionally, shares of HSY dropped 11.8% over the past 52 weeks, notably underperforming the Dow’s 10.3% rise over the same time frame.
HSY stock has mostly remained below mostly its 200-day and 50-day moving averages since late October 2024, with some fluctuations, underscoring its bearish trend.
Hershey’s stock prices fell marginally following the release of its mixed Q1 2025 results on May 1. The company reported net sales of $2.8 billion, a 13.8% decline from the prior-year quarter, missing Wall Street expectations. The decline in net sales was primarily due to lower volumes, due to unfavorable timing of the Easter and two fewer shipping days compared to the year-ago quarter. This was only partially offset by modest price gains. Meanwhile, its adjusted EPS declined 31.9% year-over-year to $2.09, but still exceeded analysts’ estimates of $1.94.
Compared to its rival, Mondelez International, Inc. (MDLZ) has outpaced the HSY stock. MDLZ stock has soared 12.6% on a YTD basis and declined marginally over the past 52 weeks.
Among the 23 analysts covering the HSY stock, the consensus rating is a “Hold.” As of writing, the stock is currently trading above the mean price target of $159.27.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.