A resistance line has formed in the chart of Hershey Co . (NYSE:HSY). If the stock breaks through this level, a breakout could occur. Read more if you would like to learn how to take advantage of this trade.Hershey Co. (HSY) is a leading confectionery manufacturer in the U.S, controlling around 46% of the domestic chocolate space. Beyond its namesake label, the firm's mix has expanded over the last 85 years and now consists of 90 brands, including Reese's, Kit Kat, Kisses, and Ice Breakers.
The company has been benefiting from a recovery in consumption in the U.S. and international markets. In fact, consumption has been elevated both away from home and at home. HSY’s focus on acquisitions to expand its portfolio also bodes well. In its most recent reported results, earnings surpassed estimates and sales jumped year over year.
HSY has a current ratio of 1.4, which indicates it has more than enough liquidity to handle short-term obligations. This has led to a Quality Grade of A in our POWR Ratings system. The company has a steady history of growth with earnings rising an average of 12.8% over the past five years. Analysts expect earnings to rise 12.7% for this year as well.