Hershey Stock Rises 2.7% Ahead of October Earnings Report

Hershey (HSY) shares climbed 2.7% to close at $168.68 in the latest trading session, outperforming the broader market. The stock's gain exceeded the S&P 500's 0.33% rise, while the Dow Jones Industrial Average added 1.08% and the Nasdaq Composite increased by 0.08%. This daily performance contrasts with the stock's recent trajectory, as Hershey shares have declined by 3.83% over the past month. During that same period, the Consumer Staples sector gained 0.3% and the S&P 500 rose by 1.41%, leaving the candy maker's stock trailing both benchmarks.

Investors are focused on the company's upcoming earnings disclosure, scheduled for October 29, 2026. According to current consensus estimates, Hershey is projected to report earnings of $2.11 per share for that period. This figure would represent year-over-year growth of 62.31%. The consensus also forecasts revenue of $3.25 billion for the quarter, indicating a 2.3% increase compared to the corresponding quarter of the prior year.

For the full fiscal year, Zacks Consensus Estimates project earnings of $8.49 per share and total revenue of $12.29 billion. These figures represent changes of +34.55% and +5.12%, respectively, from the prior year. The Zacks Consensus EPS estimate has remained stagnant within the past month. Consequently, Hershey currently holds a Zacks Rank of #3, which corresponds to a Hold rating. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). Since 1988, stocks rated #1 have generated an average annual return of +25%, according to outside-audited data.

Valuation metrics indicate that Hershey trades at a premium relative to its industry peers. The company's Forward P/E ratio stands at 19.35, compared to an industry average Forward P/E of 18.91 for the Food - Confectionery sector. The PEG ratio, which factors in expected earnings growth, is currently 1.3 for Hershey. This matches the average PEG ratio of 1.3 for the Food - Confectionery industry as of yesterday's close.

The Food - Confectionery industry is part of the Consumer Staples sector and currently holds a Zacks Industry Rank of 195. This places it in the bottom 21% of all industries, which number over 250. The Zacks Industry Rank measures strength by averaging the Zacks Rank of individual stocks within a group. Research indicates that top-rated industries outperform the bottom half by a factor of 2 to 1.