Hershey (HSY) Expands Shaq-A-Licious Gummies Line With New Sneaker-Shaped Flavors

The announcement of Shaq-A-Licious XL Gummies by Hershey (HSY) and its collaboration with Shaquille O'Neal adds a playful twist to the company's product line. While this innovative launch punctuated Hershey's recent quarter, the company's share price saw an increase of about 12%. The broader market trends, including the S&P 500 and Nasdaq hitting all-time highs, may have bolstered this uptick. Hershey’s recent product diversification efforts, coupled with market optimism reflected in the indexes, suggest that these elements likely provided additional momentum to the company’s share price appreciation during the period.

Every company has risks, and we've spotted 1 possible red flag for Hershey you should know about.

Outshine the giants: these 26 early-stage AI stocks could fund your retirement.

The introduction of Shaq-A-Licious XL Gummies is a key development for Hershey, potentially energizing their efforts to innovate and diversify within snack categories. By expanding its product line, Hershey may see positive impacts on its market share and revenue, reinforcing the narrative of strategic diversification and incremental growth opportunities. Analysts are carefully observing how this new product might influence future revenue and earnings forecasts, especially given the current market conditions where high cocoa prices and competitive pressures are concerns.

Over the past five years, Hershey's total shareholder return was 46.12%, indicating a solid performance when considering both share price growth and dividends. Despite challenges, this demonstrates resilience and a positive long-term trend. Comparatively, in the last year, Hershey outperformed its industry, which saw a decline of 15.1%, while it underperformed the broader US market that returned 20%, highlighting its relative strength in the food sector.

Currently, Hershey's share price is US$187.69, just above the consensus price target of US$185.00. This suggests that recent market optimism has slightly overshot analyst expectations, who generally regard the stock as being priced higher than their fair value estimates. The Shaq-A-Licious initiative could provide additional revenue streams, potentially lifting these forecasts in the future, yet it's crucial for Hershey to manage cost pressures and competitive threats to maintain profitability and investor confidence.

Dive into the specifics of Hershey here with our thorough balance sheet health report.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com