From Yahoo Finance: 2025-05-26 09:15:00

Hershey is facing cost headwinds leading to a significant earnings decline, yet sales remain resilient. The company is investing for the future despite challenges. Shares have dropped over 40%, presenting a buying opportunity for growth investors. Cocoa prices are rising, affecting Hershey’s margins, but demand remains strong. The Hershey Trust controls the company and takes a long-term approach, unfazed by short-term issues.

Hershey, a consumer staples company specializing in snacks, faces challenges due to soaring cocoa prices. The company anticipates a 35% drop in earnings despite a projected 2% sales increase for the year. Hershey continues to invest in new brands, aiming to diversify its business despite the recent share price decline. The downturn presents an opportunity for both growth and income investors.

The Hershey Trust’s long-term focus and control of the company provide stability during the cocoa price increase. Hershey’s history of growth and solid demand for its products make it an attractive investment option. Despite the recent challenges, Hershey remains committed to investing in its future. The decline in stock price has increased the dividend yield to 3.5%, making it an appealing prospect for investors.



Read more at Yahoo Finance: This Is Why Hershey’s Sell-Off Is a Buying Opportunity for Growth Investors