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

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 lower today making it today's featured Consumer Goods laggard. The sector as a whole closed the day up 0.5%. By the end of trading, Hershey Company fell $1.43 (-1.6%) to $88.05 on heavy volume. Throughout the day, 1,793,713 shares of Hershey Company exchanged hands as compared to its average daily volume of 1,132,800 shares. The stock ranged in price between $87.48-$89.57 after having opened the day at $89.33 as compared to the previous trading day's close of $89.48. Other companies within the Consumer Goods sector that declined today were: AEP Industries ( AEPI), down 20.1%, Titan International ( TWI), down 13.6%, Amira Nature Foods ( ANFI), down 9.2% and Global-Tech Advanced Innovations ( GAI), down 5.8%.
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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 $14.3 billion and is part of the food & beverage industry. The company has a P/E ratio of 28.5, above the S&P 500 P/E ratio of 17.7. Shares are up 21.5% year to date as of the close of trading on Friday. 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 positive front, SGOCO Group ( SGOC), down 29.2%, KapStone Paper And Packaging Corporation ( KS), down 17.9%, Motorcar Parts of America ( MPAA), down 12.6% and Appliance Recycling Centers Of America ( ARCI), down 9.2% , were all gainers within the consumer goods sector with BorgWarner ( BWA) being today's featured consumer goods sector leader.

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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