Is the Shaquille O'Neal Gummy Launch Changing the Investment Case for Hershey (HSY)?

• Hershey recently partnered with Shaquille O'Neal to launch Shaq-A-Licious XL Gummies, a sneaker-shaped product promoted through live events and new flavors inspired by O'Neal’s signature sneakers.
• This collaboration, alongside a positive Goldman Sachs analyst upgrade, has generated significant consumer excitement and renewed interest from institutional investors in Hershey's future prospects.
• We'll examine how Shaquille O'Neal's product launch could bolster Hershey's position in new snacking categories and influence its growth outlook.

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Hershey Investment Narrative Recap

To be a shareholder in Hershey, you generally need to believe that its strong brand, disciplined management, and ongoing innovation will help weather margin pressures and competitive threats, even as earnings guidance for 2025 remains cautious. The excitement around the Shaquille O'Neal partnership and positive analyst attention may temporarily lift investor sentiment, but these developments are unlikely to materially offset the primary short-term risks of elevated cocoa costs and pressures on earnings.

Of the recent company announcements, the Q3 2025 earnings release scheduled for October 30 is especially timely, as it will offer investors a clearer look at Hershey's ability to navigate ongoing margin challenges, as well as early contributions from new product launches like Shaq-A-Licious XL Gummies. This upcoming report is viewed by many as the crucial near-term event for reassessing the company’s outlook, against the backdrop of ongoing cost headwinds and muted profit guidance.

However, even with these new products lining shelves, investors should be aware that in the face of persistent high cocoa prices and...

Read the full narrative on Hershey (it's free!)

Hershey's narrative projects $12.2 billion revenue and $1.8 billion earnings by 2028. This requires 4.3% yearly revenue growth and a $0.2 billion earnings increase from $1.6 billion.

Uncover how Hershey's forecasts yield a $189.18 fair value, a 3% downside to its current price.

Exploring Other Perspectives

Thirteen individual fair value estimates from the Simply Wall St Community range from US$100.50 to US$189.18 per share. Against this backdrop, the ongoing challenge of higher cocoa prices remains central to the company's outlook and may shape investor expectations going forward.

Explore 13 other fair value estimates on Hershey - why the stock might be worth as much as $189.18!

Build Your Own Hershey Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Hershey research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Hershey research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hershey's overall financial health at a glance.

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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.

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