HSY has retraced further subsequent to my February 3, 2018 article. In this article I share my thoughts on HSY's current valuation.
- Hershey’s current valuation is similar to that evidenced in FY2009 at which time we were experiencing that ‘little event’ called The Financial Crisis.
- HSY is unlikely to appeal to investors seeking companies with ‘high octane’ growth.
- The company’s dividend yield and valuation are at levels not evidenced in several years.
At the time I composed my February 3, 2018 Hershey Company (NYSE:HSY) ‘There Are Far Better Investment Options Out There’ post, HSY had just pulled back to ~$103 from a high of ~$114 at the beginning of January 2018. In that article I indicated:
‘There is a vast universe of publicly traded companies in which you can invest and many offer far more upside than HSY. While we have owned HSY for many years and have been aptly rewarded, I think you will be challenged to generate a decent return if you invest in HSY at current levels (even with the recent pullback).’
Subsequent to that article, HSY has retraced further to the current ~$90 level. Now that HSY has retraced ~$23/share (~20% pullback from ~$114) from levels recorded just 5 months ago I thought I would revisit whether HSY now presents an attractive buying opportunity.
Please click here to read my HSY stock analysis.
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