Can Hershey Still Offer Tasty Returns?

With shares of Hershey (NYSE:HSY) trading at around $73.40, is HSY an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock’s Movement

Writing about Hershey is enjoyable because it’s a feel-good story. This is a company that always looks out for the people in its community, is good to its employees, and is now helping children in Ghana. Hershey is also a creative company. For instance, if you would like information about baking, or if you would like to talk about baking with others, then you can go to @HersheysKisses on Twitter between 9 a.m. and 12 p.m. or between 3 p.m. and 6 p.m. during the holiday season.

All of this might make people feel warm and fuzzy inside, but investors want to know if the stock will move higher. While that’s impossible for anyone to predict with 100 percent accuracy, we can look at some factors that give us good indications on which way the stock is likely to move in the future.

Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.

Before we get started, it’s important to note that Hershey has a 2.30 percent yield. Therefore, you will always have some money coming in when you own the stock. In regards to the business, Hershey has a double digit profit margin, over $900 million in operating cash flow, and they are now focusing on expanding international growth in China and Mexico. In regards to the profit margin, it has increased five years in a row.

Everything is looking up so far, but do the most important numbers tell the same story? Let’s take a look.