The Hershey Company ($HSY) Cautious Buy or Hold to $77 Confident Investor Rating: Fair

Company name The Hershey Company
Stock ticker HSY
Live stock price [stckqut]HSY[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Fair
P/E growth Fair
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $81.07
Target stock price (averages with growth) $88.66
Target stock price (averages with no growth) $71.42
Target stock price (manual assumptions) $83.79

The following company description is from Google Finance: http://www.google.com/finance?q=hsy

The Hershey Company is a producer of chocolate in North America and sugar confectionery products. The Company's principal product groups include chocolate and sugar confectionery products; pantry items, such as baking ingredients, toppings and beverages, and gum and mint refreshment products. It operates as a single segment in manufacturing, marketing, selling and distributing the products under more than 80 brand names. Its three operating segments consist of geographic regions, including the United States, the Americas, and Asia, Europe, the Middle East and Africa. The Company markets its products in approximately 70 countries worldwide. In February 2011, the Company acquired a 49% interest in Tri-Us, Inc. a company that manufactures, markets and sells nutritional beverages under the mix1 brand name. In January 2012, the Company acquired all of the outstanding stock of Brookside Foods Ltd. (Brookside).

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

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