Jim Kramer of CNBC on Monday advised investors to pick Hershey’s stock for their portfolio.
“Hershey is one of the most consistent growth stocks in a group where security comes first, and you know what they say, security never takes a break. I’ll buy something here, then wait to buy more if the next time we have inflation the stock hits Fear, says the “Mad Money” host.
Hershey’s stock rose 0.09% to $ 223.93 on Monday, hitting a new 52-week high of $ 226.45 earlier in the day. The company lost its fourth-quarter earnings to Wall Street expectations.
“One of the best secrets on the market is how well this company, this confectionery maker, has done in the era of inflation. Simply put, Hershey is the group’s best performer by any measure, but never talked about it,” Kramer said.
Hershey has diversified its brand portfolio in recent years, acquiring Pirate’s Booty, Skinnipp-Guardian Amplify Snack Brands, and most recently Dots Pretzels last year. “These were the perfect pick-ups because Covid hit the nation and turned us all into snack-a-homer,” Kramer said.
He also praised Hershey’s “amazing value for money”. That gives the company a lease on competitors battling skyrocketing raw costs and helping to increase Hershey’s sales and gross margins, he said.
The company said in a Q&A call for the fourth quarter of 2021 that it expects “further pricing in the first half of the year” as well as “tough” gross margins, but expects gross margins to improve gradually as the company approaches the fourth quarter of 2022.
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