With a market cap of $34.6 billion, The Hershey Company (HSY) is a leading global manufacturer of chocolate, non-chocolate confectionery, salty snacks, and pantry items, with operations spanning approximately 80 countries. It operates through three reportable segments: North America Confectionery; North America Salty Snacks; and International.

Shares of the Hershey, Pennsylvania-based company have underperformed the broader market over the past 52 weeks. HSY has dropped 14.6% over this time frame, while the broader S&P 500 Index ($SPX) has gained 8.6%. However, shares of Hershey are up marginally on a YTD basis, outpacing SPX’s 3.8% decrease.

Narrowing the focus, the chocolate bar and candy maker has lagged behind the Consumer Staples Select Sector SPDR Fund’s (XLP) 4.8% rise over the past 52 weeks. 

Despite reporting better-than-expected Q1 2025 adjusted EPS of $2.09, Hershey shares fell marginally on May 1 due to a 31.9% year-over-year EPS decline and a 13.8% drop in net sales to $2.8 billion, missing the estimate. Additionally, volume headwinds from ERP-related inventory laps, holiday timing shifts, and reduced shipping days. Furthermore, management guided for a full-year adjusted EPS of $6 - $6.18, reflecting a mid-30% decline from 2024, adding to investor concerns.

For the fiscal year ending in December 2025, analysts expect HSY’s adjusted EPS to decline 36.4% year-over-year to $5.96. The company’s earnings surprise history is mixed. It beat the consensus estimates in two of the last four quarters while missing on two other occasions. 

Among the 23 analysts covering the stock, the consensus rating is a “Hold.” That’s based on one “Strong Buy” rating, 17 “Holds,” one “Moderate Sell,” and four “Strong Sells.”

On May 5, Barclays analyst Andrew Lazar maintained an "Equal-Weight" rating on Hershey and raised the price target to $165.

As of writing, HSY is trading above the mean price target of $159.82. The Street-high price target of $211 implies a potential upside of 23.5% from the current price.