HSY Should I Buy
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Hershey Co (HSY) is not a strong buy for a beginner investor with a long-term focus at this moment. While the stock has shown strong recent performance and positive analyst sentiment, the financial performance in the latest quarter is concerning, with significant drops in net income, EPS, and gross margin. Additionally, the stock is trading near resistance levels, and there are no strong proprietary trading signals or recent news catalysts to suggest immediate upside potential. A hold position is recommended until a better entry point or clearer growth signals emerge.
The technical indicators show a mixed picture. The MACD is positive and contracting, indicating bullish momentum. The RSI is at 70.32, which is neutral but approaching overbought territory. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), and the stock is trading near its resistance level of R1: 231.208, with support at S1: 196.53. The stock is in a bullish trend but may face resistance soon.
Strong Q4 2025 earnings beat and FY26 guidance well above consensus estimates.
Analysts have raised price targets significantly, with some reaching as high as $
Favorable elasticity trends and lower cocoa costs expected to support gross margin recovery in 2026 and 2027.
Financial performance in Q4 2025 showed a significant decline in net income (-59.83%), EPS (-59.87%), and gross margin (-31.37%).
The stock has gained 21% since January, potentially limiting further upside in the near term.
No recent news or event-driven catalysts to support immediate growth.
In Q4 2025, revenue increased by 7.05% YoY to $3.09 billion. However, net income dropped by 59.83% to $320 million, EPS fell by 59.87% to $1.24, and gross margin declined by 31.37% to 37.04%. While revenue growth is positive, the sharp declines in profitability metrics are concerning.
Analysts have raised price targets across the board, with targets ranging from $210 to $267. The consensus sentiment is positive, with firms like Goldman Sachs and Morgan Stanley maintaining Buy and Overweight ratings, respectively. However, some analysts express caution about the stock's premium valuation and suggest limited upside without additional catalysts.
