Key statistics

Is HSY a good stock to buy in 2026?

The Hershey Company (HSY) presents a mixed signal for investors in 2026. While its DCF valuation suggests significant undervaluation at $410.12, representing a 123.5% upside, the HSY stock trades at a premium P/E ratio of 33.31x compared to the Consumer Defensive sector average of 20x. Despite 22.9% of analysts rating HSY a ‘Buy,’ the consensus remains ‘Hold,’ warranting careful consideration for new positions.

2026 HSY price scenarios

Based on analyst consensus of $221.5 from 35 analysts. Not a prediction by Alert Invest.

About The Hershey Company (HSY)

The Hershey Company, together with its subsidiaries, engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally. The company operates through three segments: North America Confectionery, North America Salty Snacks, and International. It offers chocolate and non-chocolate confectionery products; gum and mint refreshment products, including mints, chewing gums, and bubble gums; pantry items, such as baking ingredients, toppings, beverages, and sundae syrups; and snack items comprising spreads, meat snacks, bars and snack bites, mixes, popcorn, and protein bars.

Under the leadership of CEO Kirk C. Tanner, The Hershey Company continues its legacy as a dominant force in the global confectionery and snack industry. With a workforce of approximately 18,540 employees worldwide, Hershey leverages its iconic brands and extensive distribution network to maintain a formidable presence. Its distinctive strengths include unparalleled brand recognition, particularly in the North American market, robust R&D capabilities for product innovation, and a strong history of consistent dividend payments, making HSY stock a staple in many consumer defensive portfolios.

HSY competitive moat and business analysis

The Hershey Company’s competitive advantage is largely derived from its robust brand portfolio and strong consumer loyalty, particularly for its chocolate and confectionery products. With a net margin of 9.12%, Hershey demonstrates solid profitability within its sector. While Return on Equity (ROE) and Return on Invested Capital (ROIC) data are currently unavailable, the company’s consistent performance underscores its ability to generate significant sales and manage costs effectively in a highly competitive market. This brand power allows Hershey to command shelf space and maintain pricing power, contributing to its enduring market position.

For the fiscal year 2025, The Hershey Company’s revenue streams are primarily segmented, though specific detailed breakdowns by product category or geographic region are not provided in the supplied data. Historically, the company has operated through North America Confectionery, North America Salty Snacks, and International segments, with a significant portion of its sales originating from its home market. This geographic concentration often provides stability but also presents opportunities for international expansion to diversify revenue. Understanding the contribution from each segment is key to assessing future growth drivers for HSY stock.

The competitive moat for HSY appears to be stable, supported by its iconic brands and a TTM revenue growth of 4.4%. This steady growth indicates the company’s ability to navigate market dynamics and maintain consumer demand. While a specific transcript quote regarding the moat’s trend is not available, the continuous investment in marketing, product innovation, and strategic acquisitions reinforces its market leadership. The company’s consistent performance in the consumer defensive sector highlights its resilience against economic downturns, further solidifying the long-term prospects of HSY stock.

When evaluating HSY valuation and prospects, it’s insightful to compare it against industry peers. For instance, comparing HSY vs ABEV (Ambev S.A.), HSY vs ADM (Archer-Daniels-Midland Company), and HSY vs EL (The Estée Lauder Companies Inc.) reveals different dynamics. While all operate in the broader consumer defensive sector, Hershey’s focus on confectionery offers a distinct market niche compared to Ambev’s beverages, ADM’s agricultural processing, or Estée Lauder’s cosmetics. These comparisons help investors gauge relative strengths in terms of market position, growth potential, and HSY valuation within its competitive landscape.

The Hershey Company analyst rating

Based on 35 analysts. 22.9% rate HSY Buy or Strong Buy.

A 22.9% ‘Buy’ rating among 35 analysts, alongside a 68.6% ‘Hold’ consensus, suggests a cautious optimism for HSY stock. While not overwhelmingly bullish, this level of conviction for a mature Consumer Defensive stock indicates underlying strength and a perceived stability in its business model, despite the relatively high P/E ratio.

Is HSY undervalued or overvalued?

Assessing HSY valuation reveals a contrasting picture. The P/E ratio of 33.31x stands significantly higher than the Consumer Defensive sector average of 20x, suggesting that HSY stock is currently trading at a premium. This elevated multiple might reflect investor confidence in Hershey’s brand strength, consistent earnings, and defensive characteristics, but it also implies that future growth expectations are already factored into the current share price.

However, a Discounted Cash Flow (DCF) analysis points to a fair value of $410.12, indicating a substantial undervaluation of 123.5% compared to the current price. This discrepancy suggests that, from a fundamental cash flow perspective, HSY stock could offer considerable upside. While P/B (7.7x) also appears high, the P/S ratio of 3.1x indicates a fair valuation relative to sales, providing a more balanced view of HSY’s market pricing versus its intrinsic worth.

HSY financial health & key metrics

For value investors considering HSY stock, the financial health presents a mixed but generally stable picture. While the P/E ratio indicates a premium relative to the sector, the strong Free Cash Flow (FCF) yield of 5.83% and a significantly undervalued DCF fair value of $410.12 are compelling signals. The debt-to-equity ratio of 1.13x is manageable for a mature company, and a net margin of 9.12% suggests efficient operations. Despite a moderate revenue growth of 4.4%, HSY offers a defensive play with strong cash generation, appealing to those seeking stability and potential long-term value, even with its current market premium.

The Hershey Company earnings history & next report

The Hershey Company reported EPS of $2.35, beating estimates by 15.2%. Next earnings: 2026-07-29 with EPS estimate of $1.44.

The Hershey Company’s next earnings report on 2026-07-29, with an estimated EPS of $1.44, will be closely watched by investors. Following a strong beat of 15.2% on its last reported EPS of $2.35, the market will be keen to see if HSY can maintain this positive momentum. Key areas to monitor include commentary on raw material costs, particularly cocoa, any updates on pricing strategies, and performance across its North America Confectionery and Salty Snacks segments. Outlook on future revenue growth and any revisions to full-year guidance will be crucial for assessing the short-to-medium term trajectory of HSY stock.

HSY daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

HSY insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent HSY analyst rating changes

The Hershey Company stock news today

How does HSY compare to its peers?

To gain a comprehensive perspective on HSY stock, it is essential to compare its performance and fundamentals against key competitors within the Consumer Defensive sector. While each company has its unique focus, examining how The Hershey Company stacks up against other established players like Ambev S.A. (ABEV), Archer-Daniels-Midland Company (ADM), and The Estée Lauder Companies Inc. (EL) can highlight relative strengths, weaknesses, and potential investment opportunities. These comparisons allow investors to assess HSY valuation and market position more accurately.

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