The start of December 2024 brought a story that some investors were already expecting to see, just not in the way that it happened. Despite rising cocoa prices and a seeming disinterest in consumer staples stocks, shares of Hershey Co. (NYSE: HSY) rallied on some unexpected news. For those who understand a value investment, the news of a potential takeover bid was nothing out of the ordinary.
For reasons that will become clear in just a minute, Hershey stock—and the company behind it—is a screaming buy at these prices, even after the recent rally. Even without any financial analysis of the business, investors can lean on this fact: Hershey’s management decided to reject the offer, citing that the valuation given on the takeover bid was “too low.” Contrary to what some may think, that is an excellent move that Wall Street analysts agree with.
