Investment Analysis Report for The Hershey Company (HSY)

Publication Date: December 17, 2025

Company Overview

The Hershey Company (NYSE: HSY), headquartered in Hershey, Pennsylvania, operates within the confectionery segment of the consumer defensive sector. Founded in 1894, Hershey has developed into a titan in the global confectionery market, producing a wide array of chocolate and non-chocolate confectionery items alongside pantry staples and snacks. Its portfolio boasts popular brands such as Hershey's, Reese's, Kisses, and Jolly Rancher, among others. Hershey distributes its products through various channels including grocery stores, convenience shops, and wholesale distributors, exporting to approximately 80 countries worldwide.

As a prominent player in the confectionery industry--an industry currently generating total revenues of $11.49 billion--Hershey's stable demand base and expansive market reach position it favorably among investors. Despite an environment where analysts suggest a "hold" recommendation for its stock, Hershey continues to be at the forefront of the confectionery landscape.

52-Week Price Performance Analysis

52-Week Price Performance Chart

The performance of The Hershey Company over the past year has been generally positive, characterized by a robust upward trend. Beginning the year at approximately $140, the stock has climbed to its current price of $188.15, showcasing a notable increase of 12.68%. Analyzing the 52-week stock chart reveals several critical findings:

• Support and Resistance Levels: The stock has encountered significant resistance around the $188.15 range, where it has tested multiple times without sustaining a breakout. Conversely, support has been firmly established near $150, providing a reliable floor for the price during downturns.

• Moving Averages: Currently, the stock's fifty-day moving average sits at approximately $181.80, suggesting a bullish swing and supporting recent price increases. The alignment of the price near this moving average helps reinforce a positive outlook as the stock trends upward.

• Recent Price Action: Recently, Hershey has rebounded from previous declines, indicating renewed bullish momentum. Investors should monitor for a decisive breakout past the resistance level of $188.15, as this could signify further potential upside.

The key trend line indicates a steady increase, yet periods of volatility observed in February and October suggest moments where the stock price could oscillate sharply. Traders should remain vigilant for indicators of changes in market sentiment.

Financial Performance and Metrics

The Hershey Company's recent financial performance underscores its strength within the confectionery segment:

• Current Stock Price: $188.15
• Market Capitalization: Approximately $27.6 billion based on current pricing with 148,171,608 shares outstanding.
• Revenue: $11.49 billion, demonstrating solid consumer demand.
• EBITDA: Approximately $2.45 billion, reflecting operational efficiency and healthy profitability margins.

Hershey's current price targets are noteworthy: with a high projection of $220.00 and a mean at $191.13, analysts indicate potential growth. Additionally, a low estimate of $131.00 signifies volatility and varying market expectations. The current short interest of 6.89% suggests limited bearish pressure, reflecting cautious optimism among investors.

Recent News and Developments

Recent developments have created ripples in the Hershey investment narrative:

1. Cocoa Price Surge: Hershey has been pressured by rising cocoa costs, leading to significant impacts on profitability. In July 2025, the company announced its intention to raise chocolate prices to combat these increases due to supply concerns from major producing nations like Ghana and the Ivory Coast.

2. CFTC Approval Request: In January 2025, Hershey sought approval from the Commodity Futures Trading Commission (CFTC) to procured a larger volume of cocoa than previously allowed, in efforts to mitigate supply shocks from global shortages.

3. Leadership Transition: CEO Michele Buck's announcement of her retirement effective June 30, 2026, adds an element of uncertainty as the company prepares for a leadership transition.

4. Analyst Rating Changes: Bernstein's decision to downgrade Hershey's stock from "Outperform" to "Market Perform" reflects concerns over stagnant chocolate volume growth despite new product introductions, highlighting challenges ahead for the company.

Overall, these developments contribute to a complex financial landscape that potential investors should navigate cautiously.

Market Sentiment and Analyst Recommendations

Analyst sentiment around Hershey's stock appears largely cautious, with a mean recommendation score of 2.8 (where lower values indicate stronger buy signals). This includes input from 23 analysts providing insights into the company's performance. Investor confidence is further illustrated through the stock's current price trading closer to its recent highs than its lows, suggestive of overall market optimism.

• Target Prices: Analyst consensus presents a range of price targets, with a high of $220.00 and a low of $131.00. The median target aligns closely to $192.00, showing a fragmented but generally favorable outlook in the mid term.

Conclusion

In summary, while The Hershey Company demonstrates a favorable trajectory in terms of its stock performance and financial health, potential investors must also consider the inherent risks stemming from rising commodity costs, ongoing market dynamics, and upcoming leadership transitions. The company's current price and operational strategies suggest opportunities for growth, although caution is warranted due to fluctuating market sentiments and competitive pressures. As Hershey navigates these complexities, it remains a formidable player in the confectionery sector with a solid foundation for long-term investment.