It is often explained that HSY is down because of high cocoa prices. While cocoa prices are temporarily high, I would anticipate that these cost pressures will fade as time goes on and HSY will be back on its growth trajectory.
HSY has shown a long-term ability to provide strong and consistent results. Like life in general, companies do not move in straight lines. There are ups and downs. The key to success is how people or companies deal with those challenges. HSY has shown that they always meet and overcome the inevitable setbacks.
Attached are some key trends on Hershey's basic metrics. Take a look. They exhibit all the signs of being a well-managed company and that is the type of company I like to own.
How sweet it is!
I have been buying it in the mid 180's and, while it is now in the mid 190's, it's still a good buy. The attached Barron's article shows that people are starting to recognize the significant value HSY presents. The following quote is from the article.
"Hershey is rarely this cheap. The stock, at $193.71, trades at 20.2 times 12-month earnings expectations of $9.58 a share, well below its five-year average of 23.6 times. The only time it has been cheaper during the past 20 years has been during market dislocations, such as in 2009, 2018, and 2020. What’s more, Hershey’s high quality and predictability of earnings typically means that it trades at a premium to the S&P 500 and to other staples. Now it trades at a discount to both."
