HSY - Hershey: Stagnant Performance With Strong Fundamentals Presents An Opportunity

2024-07-16 10:25:41 ET

Summary

• The Hershey Company has a strong brand with a wide moat and despite recent stock price fluctuations, this company has demonstrated a history of success.
• Recent company developments include the use of robotics and A.I. to streamline factory processes, high-volume share buybacks, and strategic advertising during major events.
• Strong fundamentals point to a well managed company that can succeed through short term headwinds and provide value to shareholders.
• Fundamental analysis shows HSY is undervalued, with high returns on equity, assets, and invested capital, making it a potential long-term winner at this price.

Investment Thesis

The Hershey Company ( HSY ) has been around for over a century and have grown their brand to be well known among consumers with a wide moat against competition. HSY is the name brand consumers search for in stores, especially during holidays. Year to date, HSY's stock has remained relatively stagnant dropping 1% and over the last year the stock has tumbled over 25% compared to the S&P 500's 25% gain. This short term drop relative to the company's history and moat open up an opportunity for investors to buy this company at a fair price. Based on the fundamental analysis below, I believe HSY is within buying range and should be a long-term winner. ...

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