Hershey Stock Buy Hold or Sell Recommendation

HSY -  USA Stock  

USD 194.37  0.24  0.12%

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Hershey Foods Corp is 'Strong Buy'. Macroaxis provides Hershey Foods buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding HSY positions. The advice algorithm takes into account all of Hershey Foods' available fundamental, technical, and predictive indicators you will find on this site.

Hershey Advice 

 
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The advice is provided from Hershey Foods' buy-and-hold perspective. Please check Hershey Foods Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Hershey and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Hershey Foods Corp.

Execute Hershey Foods Buy or Sell Advice

The Hershey recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Hershey Foods Corp. Macroaxis does not own or have any residual interests in Hershey Foods Corp or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Hershey Foods' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Hershey FoodsBuy Hershey Foods
Strong Buy

Volatility

Very steadyDetails

Hype Condition

Over hypedDetails

Current Valuation

UndervaluedDetails

Odds of Distress

LowDetails

Economic Sensitivity

Slowly supersedes the marketDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

StrongDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Hershey Foods Corp has a Risk Adjusted Performance of 0.0974, Jensen Alpha of 0.1232, Total Risk Alpha of 0.1806, Sortino Ratio of 0.1728 and Treynor Ratio of 0.2949
Macroaxis provides investment recommendation on Hershey Foods to complement and cross-verify current analyst consensus on Hershey Foods Corp. Our trade recommendations engine determines the entity's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Hershey Foods Corp is not overpriced, please check out all Hershey Foods fundamentals, including its debt to equity, and the relationship between the gross profit and price to earnings to growth . Given that Hershey Foods Corp has a price to earning of 29.02 X, we strongly advise you to confirm Hershey Foods Corp market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your regular risk tolerance and investing horizon.

Hershey Foods Trading Alerts and Improvement Suggestions

Hershey Foods current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Hershey analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Hershey analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price191.05
Target Median Price190.00
Target High Price206.00
Recommendation Mean2.60
Number Of Analyst Opinions19
Target Low Price180.00
Average Consensus Hold
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Hershey Foods Returns Distribution Density

The distribution of Hershey Foods' historical returns is an attempt to chart the future uncertainty of Hershey Foods' future price movements. The chart of the probability distribution of Hershey Foods stock daily returns describes the distribution of returns around its average expected value. We use Hershey Foods Corp price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Hershey Foods returns is essential to provide solid investment advice for Hershey Foods stock.
Mean Return0.11Value At Risk-1.69
Potential Upside1.42Standard Deviation0.94
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Hershey Foods historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Hershey Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Hershey Foods is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Hershey Foods Corp backward and forwards among themselves. Hershey Foods' institutional investor refers to the entity that pools money to purchase Hershey Foods' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Nordea Investment Management AbCommon Shares1.2 M224.3 M
Railway Pension Investments LtdCommon Shares240.1 K46.4 M
Russell Investments Group LtdCommon Shares203 K39.1 M
New York State Teachers Retirement SystemCommon Shares168.5 K32.6 M
Boston Trust Walden CorpCommon Shares137 K26.5 M
Rheos Capital Works IncCommon Shares65 K12.6 M
Lvm Capital Management LtdCommon Shares62.9 K12.2 M
Note, although Hershey Foods' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Hershey Foods Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(250.07 M)(278.84 M)(290.06 M)(440.52 M)(396.47 M)(427.77 M)
Depreciation Amortization and Accretion261.85 M295.14 M291.54 M294.91 M339.14 M324.89 M
Net Cash Flow or Change in Cash and Cash Equivalents83.21 M207.82 M(94.74 M)650.73 M748.33 M807.41 M
Net Cash Flow Business Acquisitions and Disposals(186.25 M)(285.37 M)(1.17 B)(402.16 M)(361.94 M)(390.52 M)
Issuance Purchase of Equity Shares(237.02 M)(184.18 M)(286.4 M)(185.66 M)(213.51 M)(230.37 M)
Issuance Repayment of Debt Securities(80.47 M)934.81 M(184.74 M)327.17 M376.24 M315.36 M
Payment of Dividends and Other Cash Distributions(526.27 M)(562.52 M)(610.31 M)(640.73 M)(576.66 M)(622.18 M)
Net Cash Flow from Financing(843.77 M)116.11 M(1.08 B)(499.23 M)(449.31 M)(484.78 M)
Net Cash Flow from Investing(328.66 M)(1.5 B)(780.48 M)(531.28 M)(478.15 M)(515.9 M)
Net Cash Flow from Operations1.25 B1.6 B1.76 B1.7 B1.95 B1.74 B
Effect of Exchange Rate Changes on Cash6.13 M(5.39 M)3.33 M(6.99 M)(8.04 M)(8.25 M)
Share Based Compensation51.06 M49.29 M51.9 M57.58 M66.22 M56.18 M

Hershey Foods Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Hershey Foods or Consumer Defensive sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Hershey Foods stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Hershey stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.12
β
Beta against DOW0.34
σ
Overall volatility
0.88
Ir
Information ratio 0.18

Hershey Foods Volatility Alert

Hershey Foods Corp has low volatility with Treynor Ratio of 0.29, Maximum Drawdown of 4.5 and kurtosis of 0.69. However, we advice all investors to further analyze Hershey Foods Corp to make certain all market information is desiminated and is consistent with the current expectations about Hershey Foods upside potential. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Hershey Foods' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Hershey Foods' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Hershey Foods Implied Volatility

Hershey Foods' implied volatility exposes the market's sentiment of Hershey Foods Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Hershey Foods' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Hershey Foods stock will not fluctuate a lot when Hershey Foods' options are near their expiration.

Hershey Foods Fundamentals Vs Peers

Comparing Hershey Foods' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Hershey Foods' direct or indirect competition across all of the common fundamentals between Hershey Foods and the related equities. This way, we can detect undervalued stocks with similar characteristics as Hershey Foods or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Hershey Foods' fundamental indicators could also be used in its relative valuation, which is a method of valuing Hershey Foods by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Hershey Foods to competition
FundamentalsHershey FoodsPeer Average
Return On Equity62.28 %(0.31) %
Return On Asset13.49 %(0.14) %
Profit Margin16.23 %(1.27) %
Operating Margin26.35 %(5.51) %
Current Valuation44.18 B16.62 B
Shares Outstanding145.39 M571.82 M
Shares Owned by Insiders0.17 %10.09 %
Shares Owned by Institutions78.04 %39.21 %
Number of Shares Shorted1.98 M4.71 M
Price to Earning29.02 X28.72 X
Price to Book16.29 X9.51 X
Price to Sales4.66 X11.42 X
Revenue8.83 B9.43 B
Gross Profit3.7 B27.38 B
EBITDA2.33 B3.9 B
Net Income1.43 B570.98 M
Cash and Equivalents675.52 M2.7 B
Cash per Share3.28 X5.01 X
Total Debt4.7 B5.32 B
Debt to Equity1.85 %48.70 %
Current Ratio1.44 X2.16 X
Book Value Per Share12.27 X1.93 K
Cash Flow from Operations2.01 B971.22 M
Short Ratio2.05 X4.00 X
Earnings Per Share6.89 X3.12 X
Price to Earnings To Growth3.01 X4.89 X
Number of Employees15.2 K18.84 K
Beta0.41-0.15
Market Capitalization41.18 B19.03 B
Total Asset5.34 B29.47 B
Retained Earnings1.32 B9.33 B
Working Capital(369.31 M)1.48 B
Current Asset1.85 B9.34 B
   Sale by Jason Reiman of 150 shares of Hershey Foods [view details]

Hershey Foods Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Hershey . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution25219.01
Daily Balance Of Power0.0443
Rate Of Daily Change1.0
Day Median Price194.97
Day Typical Price194.77
Market Facilitation Index0.0
Price Action Indicator(0.48)

About Hershey Foods Buy or Sell Advice

When is the right time to buy or sell Hershey Foods Corp? Buying financial instruments such as Hershey Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Hershey Foods investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables568.51 M615.23 M553.71 M516.21 M
Inventories815.25 M964.21 M867.79 M766.4 M

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Please check Hershey Foods Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Hershey Foods Corp information on this page should be used as a complementary analysis to other Hershey Foods' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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Is Hershey Foods' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Hershey Foods. If investors know Hershey will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Hershey Foods listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Hershey Foods Corp is measured differently than its book value, which is the value of Hershey that is recorded on the company's balance sheet. Investors also form their own opinion of Hershey Foods' value that differs from its market value or its book value, called intrinsic value, which is Hershey Foods' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Hershey Foods' market value can be influenced by many factors that don't directly affect Hershey Foods' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Hershey Foods' value and its price as these two are different measures arrived at by different means. Investors typically determine Hershey Foods value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hershey Foods' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.