Is Hershey Stock a Buy, Sell, or Hold in 2025?
Hershey's (NYSE: HSY) stock price has fallen a huge 45% or so from its 2023 highs. That has pushed the dividend yield up to a historically high 3.7%. Whether or not you view this as an opportunity to buy the stock will depend on how you think the company will handle the potentially long-term headwinds created by a massive rise in the cost of cocoa, a key ingredient in Hershey's chocolate products.Given the stock price decline, the sell story for Hershey is the one with the most backing on Wall Street. The sell story is pretty simple. The swift rise in cocoa prices is going to crimp profit margins and leave Hershey with weak results for perhaps years, as the supply/demand dynamics in the cocoa market slowly recover. It isn't an unrealistic take on the situation.Image source: Getty Images.Continue reading
Hershey's (NYSE: HSY) stock price has fallen a huge 45% or so from its 2023 highs. That has pushed the dividend yield up to a historically high 3.7%. Whether or not you view this as an opportunity to buy the stock will depend on how you think the company will handle the potentially long-term headwinds created by a massive rise in the cost of cocoa, a key ingredient in Hershey's chocolate products.
Given the stock price decline, the sell story for Hershey is the one with the most backing on Wall Street. The sell story is pretty simple. The swift rise in cocoa prices is going to crimp profit margins and leave Hershey with weak results for perhaps years, as the supply/demand dynamics in the cocoa market slowly recover. It isn't an unrealistic take on the situation.
Image source: Getty Images.
