The Hershey Co
HSY: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$545.00 | Ptz | Kssmfmp |
Hershey Earnings: Margin Gains Not Enough to Placate the Market, Rendering Shares a Bit Undervalued
While our $196 fair value estimate shouldn’t see much change, the market continued to sour on wide-moat Hershey despite fair third-quarter marks: 10.7% organic sales growth, 240 basis points of adjusted gross margin expansion to 44.9%, and a 230-basis-point bump in adjusted operating margin to 24.9%. In this context, Hershey’s stock price is down around 17% since January but has slid around 30% from its peak in early May.