What Makes Hershey Co (NYSE: HSY) Stock a Buy?

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The Hershey Company (NYSE:HSY) is a global confectionery leader and the largest chocolate producer in US. Headquartered in Hershey, Pa.,. Hershey has approximately 22,000 employees that produce more than 80 brands around the world that drive more than $7.4 billion in annual revenues. Hershey doesn’t have to spend much money to maintain its plants and grow. It’s been making the same basic product for more than 100 years - a chocolate bar. There’s no radical R&D required, and no new massive factory build every few years. 

Thus, as sales expand, more and more of the profits can be distributed to shareholders via dividends and share buybacks. Over time, this advantage compounds and becomes almost unbeatable.  The top line of the company has been growing at low single digits but the tax rate decrease has benefited the earnings, increasing the EPS in the low teens. The company expects a total EPS growth for the year between ~14% - 16%. We believe there is at least a 13% return opportunity on HSY stock because of the value added with new products and the effective tax rate reduction. With that being said now may be as good as time as any to buy HSY Stock. 


These are some of the reasons   Hershey Company (NYSE:HSY) investment grade on the Hade Platform has risen steadily, making it a Top 100 stock. Ironically, this stability in overall rating happens during a time when the overall market is falling, and as our investment grades as an average have consistently declined for the last four months, effectively predicting a correction. 

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