Friday, December 27, 2024

Hershey Stock: A Sweet Surprise... or a Melted Mess?

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Hershey Stock: A Sweet Surprise... or a Melted Mess?

Anthony Summers, Director of Trading, The Oxford Club

Anthony Summers

While the broader stock market has raced to new highs lately, Hershey (NYSE: HSY) has left investors with a bitter taste in their mouths. After hitting a peak near $260 early last year, shares of the chocolate and snack giant have melted down nearly 35% to around $170.

But just as a Reese's Peanut Butter Cup is more than its chocolate shell, there's more to this story than the stock price suggests.

Chart: Hershey (NYSE: HSY)
View larger image
 

Let's run the stock through The Value Meter to find out whether this pullback offers a sweet opportunity.

First, let's look at Hershey's enterprise value-to-net asset value (EV/NAV) ratio, which tells us how much investors are theoretically paying for the company's assets. With an EV/NAV of 9.7, Hershey is over 50% more expensive than the average company.

Though that might raise eyebrows, focusing solely on this metric could cause us to miss the potential richness inside.

So, is Hershey stock a tasty treat at its current price... or just a mangled, melted mess?

Get the Verdict Here

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