HERSHEY CO

110.01 +0.99 (+0.9%) Buy

HSY continues to mint money for it's investors

13 min read

HERSHEY CO delivered good returns on Thursday. It grew by +0.9% to close at 110.01. It is currently trading +22% above it's 52 week low of 89.54 and is down only -4% from it's 52 week high.

[Themes containing HSY]

HSY is currently in a up trend. The current bullish signal has generated a profit of +2.89% for HSY's investors in the last three months.

Trend

HSY has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 9 days, HSY underperformed the SP500 index on 49% days. Which indicates that on days HSY underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months HSY was mostly profitable and delivered on average +0.07% per day. It's best return during this period (of +3.39%) was on Monday, 29 Oct, 2018. While it's worst loss in the same period (of -4.93%) was on Thursday, 25 Oct, 2018. There was initially a bearish trend during this period which started on 17 Sep, 2018 and went on till 19 Sep, 2018. The trend delivered -3.15% losses to investors. This was followed by a bullish trend that started on 27 Nov, 2018 and ended on 3 Dec, 2018. This bullish trend delivered +2.74% to investors.

HSY had 8 profitable and 4 loss making months over the last year. During the last year, number of profitable months of HSY and SP500 index were the same. HSY was also a more risky investment than SP500 index as it's worst month in the last year, Feb 2018, returned -10.94% compared to -7.28% returned by SP500 index in Oct 2018. HSY had a longer winning streak of profitable months than SP500 index. It went up in 7 straight months (from Jun 2018 to Dec 2018) during which period it delivered +21.72%. It is interesting to note that both HSY and SP500 index significantly outperform during months when quarterly/annual results are announced.

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HSY is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in HSY's volatility from 1 Oct, 2018 to 31 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 14 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that HSY has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

Investors trading in HSY derivatives at this moment can consider 'Long Straddle' options strategy to receive better risk-adjusted returns.

SP500 index has more chance of extreme outcomes than HSY. Therefore, SP500 must receive a lower allocation than HSY in your portfolio. SP500 index usually has shorter drawdown period than HSY.

Based on your interest in HSY you may find it interesting to know that HQY, EHC and BURL are small caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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