Hershey's was initially published as one of our 7investing Community's New Ideas in September 2024

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Background

The following comes directly from our initial Community recommendation. 7investing's opinions may differ from the person(s) who submitted this community research.

They make chocolate. Founded in 1908. A consistently steady riser since it went public in 1927 (+22,772%) that has recently come under pressure from weather based rising cocoa prices and a fear that weight loss drugs like Ozempic will have some people eating less candy. Now completely out of favor, with recent downgrades by Citi and GS, it’s down 30% from last year’s ATH. The first really major dip in almost 100 years (seriously, check the chart). Morningstar rated four stars with an obvious wide moat, it has become somewhat oversold.

A forward P/E of 19 and a Beta of just .35, this is as steady a company as you can find. Add in a 2.86% dividend yield and it looks even better. And did I mention they make chocolate, with a leading 37% of the US market for one of the most popular products in the history of the world. Almond Joy, Cadbury, Heath, Hershey, Kisses, Kit Kat, Milk Duds, Mounds, Reese’s, and York are all theirs.