Pennsylvania-based The Hershey Company (HSY) manufactures and sells confectionery products and pantry items in the U.S. and internationally. With a market cap of $33.6 billion, Hershey operates through North America Confectionery, North America Salty Snacks, and International segments.
The confectioner has notably underperformed the broader market over the past year. HSY stock has observed a marginal 31 bps uptick in 2025 and declined 5.7% over the past 52 weeks, compared to the S&P 500 Index’s ($SPX) 15.6% gains on a YTD basis and 17.5% returns over the past year.
Narrowing the focus, Hershey has outpaced the sector-focused Consumer Staples Select Sector SPDR Fund’s (XLP) 3.4% dip in 2025 and 6.1% decline over the past year.
Despite reporting better-than-expected results, Hershey’s stock prices dipped 2.4% in the trading session following the release of its Q3 results on Oct. 30. The company observed a solid momentum in its sales during the quarter. Hershey’s organic constant currency sales increased 6.2% compared to the year-ago quarter. Meanwhile, its overall topline surged 6.5% year-over-year to $3.2 billion, beating the Street’s expectations by 1.8%. Meanwhile, its adjusted EPS decreased 44.4% year-over-year to $1.30, but surpassed the consensus estimates by a staggering 19.3%.
Despite the expectations beating performance, the company didn’t improve its full-year earnings guidance by much, which wasn’t received well by the market.
For the full fiscal 2025, ending in December, analysts expect HSY to deliver an adjusted EPS of $5.98, down 36.2% year-over-year. On a positive note, the company has a solid earnings surprise history. It has surpassed the Street’s bottom-line estimates in each of the past four quarters.
Among the 22 analysts covering the HSY stock, the consensus rating is a “Hold.” That’s based on three “Strong Buys,” 17 “Holds,” and two “Strong Sells.”
This configuration is notably more optimistic than two months ago, when only one analyst gave a “Strong Buy” recommendation and four analysts had “Strong Sell” ratings on the stock.
On Nov. 1, TD Cowen analyst Robert Moskow reiterated a “Hold” rating on HSY, but lowered the price target from $204 to $200.
HSY’s mean price target of $188.57 represents an 11% premium to current price levels. Meanwhile, the street-high target of $220 suggests a notable 29.5% upside potential.
