The Hershey Company (HSY): Today's Featured Consumer Goods Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Hershey Company ( HSY) pushed the Consumer Goods sector higher today making it today's featured consumer goods winner. The sector as a whole closed the day down 0.7%. By the end of trading, Hershey Company rose $1.14 (1.3%) to $89.17 on average volume. Throughout the day, 938,356 shares of Hershey Company exchanged hands as compared to its average daily volume of 1,069,500 shares. The stock ranged in a price between $88.10-$89.85 after having opened the day at $88.24 as compared to the previous trading day's close of $88.03. Other companies within the Consumer Goods sector that increased today were: Central European Distribution ( CEDC), up 119.0%, SGOCO Group ( SGOC), up 15.2%, Le Gaga Holdings ( GAGA), up 13.2% and Mead Johnson Nutrition Company ( MJN), up 6.2%.
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The Hershey Company, together with its subsidiaries, engages in manufacturing, marketing, selling, and distributing various chocolate and confectionery products, pantry items, and gum and mint refreshment products worldwide. Hershey Company has a market cap of $14.5 billion and is part of the food & beverage industry. The company has a P/E ratio of 28.8, above the S&P 500 P/E ratio of 17.7. Shares are up 22.5% year to date as of the close of trading on Tuesday. Currently there are 4 analysts that rate Hershey Company a buy, 1 analyst rates it a sell, and 9 rate it a hold.

TheStreet Ratings rates Hershey Company as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, Tempur-Pedic International ( TPX), down 9.0%, National Beverage Corporation ( FIZZ), down 8.2%, Mannatech ( MTEX), down 7.7% and Nautilus Group ( NLS), down 7.0% , were all laggards within the consumer goods sector with Green Mountain Coffee Roasters ( GMCR) being today's consumer goods sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the consumer goods sector could consider iShares Dow Jones US Cons Goods ( IYK) while those bearish on the consumer goods sector could consider ProShares Ultra Sht Consumer Goods ( SZK).

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