Hershey Investors Are Bullish Ahead Of Q1 Earnings, But Chocolate Inflation Concerns Analysts

Zinger Key Points
  • Wall Street expects Hershey Co. to report $2.76 EPS and $3.112 billion in revenues for Q1, with the stock down 30% over past year.
  • Hershey's stock indicates a bullish trend ahead of earnings, with technicals suggesting buying pressure while analysts remain cautious.

The Hershey Co HSY will be reporting its first-quarter earnings on Friday. Wall Street expects $2.76 in EPS and $3.112 billion in revenues as the company reports before market hours.

The stock is down about 30% over the past year, +4.44% YTD.

Hershey’s scale and experience position it well to manage the cocoa crisis better than smaller competitors. While chocolate inflation rises, Hershey’s lower cocoa content and pricing could attract consumers.

If cocoa prices revert, Hershey could benefit with expanded margins. However, the full impact on Hershey remains uncertain.

Related: Bad News Chocolate And Coffee Lovers – Prices Are Only Going Higher

Let’s look at what the charts indicate for Hershey stock, and how the stock currently maps against Wall Street estimates.

Hershey’s Stock Chart Bullish Ahead Of Q1 Earnings 

Hershey’s stock shows a strongly bullish trend, with its share price above its 5, 20, and 50-day exponential moving averages. This indicates slight buying pressure.

Chart: Benzinga Pro

Additionally, the stock’s current price of $194.73 is above its 8-day simple moving average of $190.42, its 20-day SMA of $188.89, and its 50-day SMA of $191.80, all signaling a bullish sentiment. However, the 200-day simple moving average is $198.75, is giving out a bearish signal.

Chart: Benzinga Pro

The Moving Average Convergence Divergence (MACD) indicator is -0.05, indicating bearish momentum, however treading upwards at a good pace. The Relative Strength Index (RSI) at 58.61 is currently Neutral but also treading towards the overbought zone beyond 70.

The Bollinger Bands are indicating a bullish signal, with the stock breaking out from the lower band and now trading within the upper band.

Overall, the technical analysis suggests a bullish trend for Hershey’s stock, with some indicators cautioning about potential overbought conditions soon.

Hershey Analysts Consensus Ratings

Ratings & Consensus Estimates: The consensus analyst rating on Hershey’s stock stands at a Neutral currently with a price target of $193.37.

The most recent analyst ratings for Hershey’s stock were released by Wells Fargo, Piper Sandler, and Citigroup (April 11 onwards).

Their average price target of $192.67 implies a -1.10% downside for the stock, spelling caution.

HSY Price Action: Hershey’s stock was trading at $194.95 at the time of publication.

Read Next: Hershey ‘Shrinkflation’: Chocolate Makers’ Cost Chaos As Cocoa Reaches $10,000 Per Metric Ton

Image: Pixabay

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