Jim Cramer liked the upside potential of Hershey ( HSY) on his "Mad Money" show Tuesday night. Shares of Hershey closed higher Wednesday, up $0.19, or 0.62% to $30.94.
According to Cramer, investors looking for consistent results, and even an upside surprise, need to take a closer look at Hershey. "I'm not interested in the takeover rumors," said Cramer. The story at Hershey, he said, is all about the fundamentals. Chocolates and candies, he explained, is a recession-resistant business and one that doesn't suffer from the pressures of private labels. In addition, Hershey is taking control of its own destiny by taking not only market share but also full advantage of lower raw material costs. The company also plans on taking advantage of lower advertising costs by increasing its ad spending by 20% this year. Cramer said Hershey is "getting serious" about its bottom line, with retail sales up 5% in the most recent quarter, contributing to an upside surprise of 5 cents a share. Cramer added that the company just successfully pushed through a price increase, further bolstering the company's earnings potential.