On December 15, 2025, Morgan Stanley analyst Megan Alexander upgraded The Hershey Company (NYSE: HSY) to an “Overweight” rating, forecasting a notable upside with a target price of $211. This outlook aligns with Hershey’s current trading price of $188.11, suggesting a potential growth trajectory that positions the stock as an attractive option for investors.
Recent Price Action
In recent trading sessions, HSY has shown a compelling upward trend, climbing by $6.28 or approximately 3.45% from its last closing price. The stock has recently experienced notable price movements, evidenced by its 52-week high of $199.58 and a low of $34.24. Trading volume has remained robust, with 1,627,782 shares changing hands on the last trading day, hovering just below the average volume of 1,677,903, indicating consistent investor interest. Notably, the stock’s beta stands at a low 0.177, reflecting its relatively stable nature compared to the overall market.
With a market capitalization of approximately $38.15 billion, HSY is considered a heavyweight in the consumer staples sector. The stock’s volatility remains low, with a 1.91% weekly volatility—consistent with its historically stable performance metrics.
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Historical Performance
Analyzing HSY’s broader performance, the stock has yielded a modest 5.6% return over the past month. However, quarterly results have been less favorable with a decline of 2.76%, and a slight annual gain of 0.49%. Volatility metrics indicate low fluctuation compared to peers, with monthly volatility recorded at 1.94%. The average trading volume has edged down to 1,516,096 over the last ten trading days from a three-month average of 1,598,265, further indicating a stable trading environment.
In light of recent market conditions, Hershey’s performance reflects a resilient profile amid fluctuating consumer sentiment and economic uncertainty, showcasing its ability to maintain steady returns.
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Earnings Analysis
The company’s most recent earnings report revealed an earnings per share (EPS) of $1.30, surpassing analysts’ estimates of $1.07 by an impressive 21.5%. This substantial positive surprise echoes previous performance, where HSY reported an EPS of $1.21 against an estimate of $0.993, achieving a nearly identical surprise factor. Such consistent outperformances underscore Hershey’s robust operational management and ability to deliver value, which could encourage investor confidence going forward.
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Consensus Ratings
The consensus sentiment around HSY has seen some shifts, particularly post-Morgan Stanley’s latest analysis. Of the total 15 ratings disclosed, only one is classified as a ‘Buy,’ while 13 are ‘Hold’ ratings, and one is a ‘Sell.’ The average price target has recently been adjusted to $190, reflecting a cautious optimism within the analyst community. The low and high-price targets ranging from $157 to $215 respectively further represent a wide outlook of investor sentiment, with the upgrade to “Overweight” from Morgan Stanley indicating a significant endorsement of Hershey’s growth potential.
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Stock Grading and Fundamental View
According to the Stocks Telegraph Grading Score, HSY has received a score of 47. This score reflects a reasonable assessment of the company’s overall financial health and investment profile, indicating that while there are some weaknesses, Hershey does possess strong fundamentals and recognizable brand strength in the consumer staples industry. The stock’s resilient demand in diverse market conditions and historical stability lend credence to the score.
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Conclusion
For investors considering The Hershey Company, the stock presents a compelling choice for those inclined towards long-term growth within the consumer staples sector. While the recent upgrade by Morgan Stanley and the indicated price target signal optimism, potential investors should remain cognizant of the inherent risks tied to broader economic trends and consumer preferences. With its fortified market position and consistent earnings quality, HSY offers a blend of stability and growth potential, making it a worthy watch in any investment portfolio.