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Hershey (HSY) closed the latest trading day at $189.97, indicating a +0.56% change from the previous session's end. This change lagged the S&P 500's 0.64% gain on the day. On the other hand, the Dow registered a gain of 1.85%, and the technology-centric Nasdaq increased by 0.2%.

Prior to today's trading, shares of the chocolate bar and candy maker had gained 3.21% over the past month. This has outpaced the Consumer Staples sector's gain of 0.85% and lagged the S&P 500's gain of 3.82% in that time.

Market participants will be closely following the financial results of Hershey in its upcoming release. The company plans to announce its earnings on August 1, 2024. The company is predicted to post an EPS of $1.44, indicating a 28.36% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.31 billion, down 7.09% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.59 per share and revenue of $11.44 billion, indicating changes of 0% and +2.43%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Hershey. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.1% lower. At present, Hershey boasts a Zacks Rank of #4 (Sell).

From a valuation perspective, Hershey is currently exchanging hands at a Forward P/E ratio of 19.7. Its industry sports an average Forward P/E of 19.92, so one might conclude that Hershey is trading at a discount comparatively.

One should further note that HSY currently holds a PEG ratio of 4.23. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Food - Confectionery industry was having an average PEG ratio of 3.33.

The Food - Confectionery industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 226, this industry ranks in the bottom 11% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.