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The Hershey Company (HSY) Stock Analysis

SellVALUE-TRAP 1/5Moderate Confidence

Consumer Defensive · Confectioners

Sell if holding. Momentum 3.3/10 is below the 5.0 floor at $186.62 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Customer: McLane Company, Inc. (27.0%); Concentration risk — Geographic: United States manufacturing (74.0%).

Hershey is the largest producer of quality chocolate in North America, with North America Confectionery, North America Salty Snacks (SkinnyPop, Dot's Pretzels), and International segments marketing 85+ brands in ~65 countries. Revenue comes from wholesale distributors, grocery... Read more

$186.62+8.8% A.UpsideScore 5.6/10#1 of 3 Confectioners
Stop $176.84Target $202.15(analyst − 10%)A.R:R 1.8:1
Analyst target$224.61+20.4%23 analysts
$202.15our TP
$186.62price
$224.61mean
$166
$260

Sell if holding. Momentum 3.3/10 is below the 5.0 floor at $186.62 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Customer: McLane Company, Inc. (27.0%); Concentration risk — Geographic: United States manufacturing (74.0%). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.6/10, moderate confidence.

Passes 5/6 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, earnings proximity no date, semi cycle peak clear). Fails on weak momentum. Suitability: moderate.

Thesis

Rewards
Strong earnings beat streak (4/4)
Strong growth profile
Risks
Concentration risk — Customer: McLane Company, Inc. (27.0%)
Concentration risk — Geographic: United States manufacturing (74.0%)
Thin upside margin: 8.8%

Key Metrics

P/E (TTM)34.6
P/E (Fwd)18.8
Mkt Cap$37.6B
EV/EBITDA18.8
Profit Mgn9.1%
ROE23.2%
Rev Growth10.6%
Beta0.17
Dividend3.13%
Rating analysts29

Quality Signals

Piotroski F6/9

Options Flow

P/C0.82neutral
IV46%normal
Max Pain$130-30.3% vs spot

Concentration Risks(10-K Item 1A)

  • HIGHCustomerMcLane Company, Inc.27%
    10-K Item 1A: 'Our largest customer, McLane Company, Inc., accounted for approximately 27% of our consolidated net sales in 2025'
  • HIGHGeographicUnited States manufacturing74%
    10-K Item 1A: 'Approximately 74% of our manufacturing capacity is located in the United States'

Material Events(8-K, last 90d)

  • 2026-04-14Item 5.02MEDIUM
    Andrew Archambault (President, US) leaving effective May 1, 2026. Company began a search for his replacement. No reason cited; no successor named.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker·1 ceiling hit

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Volume
0.0
Macd
1.4
Ma Position
2.2
Rsi
3.0
Obv
10.0
Capitulation risk (RSI 28, below 200MA)Volume accumulation (rising OBV)Below 200-MA but MA still rising (+2.9%/30d) — pullback in uptrend, not confirmed weakness
GatesMomentum 3.3<4.5A.R:R 1.8 ≥ 1.5Insider activity: OKNo SEC red flagsEARNINGS PROXIMITY NO DATESEMI CYCLE PEAK CLEARSuitability: Moderate
RSI
28 · Oversold
20D MA 50D MA 200D MAGOLDEN CROSSSupport $181.45Resistance $211.09

Price Targets

$177
$202
A.Upside+8.3%
A.R:R1.8:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeCautious

Risk Alerts

! Momentum score 3.3/10 — below 4.5 minimum

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-04-30 (nulld)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is HSY stock a buy right now?

Sell if holding. Momentum 3.3/10 is below the 5.0 floor at $186.62 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Customer: McLane Company, Inc. (27.0%); Concentration risk — Geographic: United States manufacturing (74.0%). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $176.84. Score 5.6/10, moderate confidence.

What is the HSY stock price target?

Take-profit target: $202.15 (+8.8% upside). Prior stop was $176.84. Stop-loss: $176.84.

What are the risks of investing in HSY?

Concentration risk — Customer: McLane Company, Inc. (27.0%); Concentration risk — Geographic: United States manufacturing (74.0%); Thin upside margin: 8.8%.

Is HSY overvalued or undervalued?

The Hershey Company trades at a P/E of 34.6 (forward 18.8). TrendMatrix value score: 5.6/10. Verdict: Sell.

What do analysts say about HSY?

29 analysts cover HSY with a consensus score of 3.4/5. Average price target: $225.

What does The Hershey Company do?Hershey is the largest producer of quality chocolate in North America, with North America Confectionery, North America...

Hershey is the largest producer of quality chocolate in North America, with North America Confectionery, North America Salty Snacks (SkinnyPop, Dot's Pretzels), and International segments marketing 85+ brands in ~65 countries. Revenue comes from wholesale distributors, grocery chains, mass merchandisers, and convenience stores primarily in North America.

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