Hershey Stock May Be Near a Sweet Spot as Cocoa Pressure Eases

Hershey is positioned for potential margin recovery as cocoa prices decline from historic highs. The company demonstrated strong pricing power during the commodity crisis, with Q1 2026 showing 10.6% net sales growth and 12.4% adjusted EPS growth. Management reaffirmed full-year guidance of 4-5% net sales growth and 30-35% EPS growth. Most analysts rate it a Hold with 20% upside potential, citing the balance between pricing power and demand sustainability.