Now, we all love chocolate, right? Except, it turns out, chocolate isn’t loving Hershey's stock right now. The chocolate king that has filled candy aisles (and our hearts) for decades has taken a bite out of investors portfolios, down 24% in the last year. And while that may make some run for the hills, others are eyeing it like a leftover Reese’s Cup in the fridge—too good to pass up (if you know, you know). 

The 130 year old company based in Pennsylvania has been juggling a few issues—rising cocoa prices, inflation, and, oh yeah, a new wave of weight loss drugs like Ozempic that could make people skip dessert altogether (although you would think it would be the opposite). As a matter of fact, their Q2 sales were down a staggering 17%. I mean, talk about a bad time to be in the candy business.

First off, Cocoa has been throwing a tantrum like my toddler son when I say no to another episode of Bluey, leaping up 44% in the last year alone. And what happens when the cost of your main ingredient surges? Yep, Hershey’s had to pull that classic “shrinkflation” move, where your favorite candy bars look a little... thinner, but somehow the price tag stays the same. 

Now for those weight-loss drugs—Ozempic and the crew are really shaking things up when it comes to eating habits. With more and more adults using these injectables to keep their appetites in check, it’s not just Hershey’s feeling the squeeze; Pepsi, General Mills, and Mondelez (Oreos) are all saying the weight-loss trend is hitting their bottom line too. But let’s be real—chocolate is like pizza. Sure, people might cut back a bit, but they’re definitely not quitting it altogether. Plus, Hershey’s is trying to stay ahead of the game by branching out into non-chocolate snacks like Dot’s pretzels and healthier options like Skinny Pop popcorn.

They’re also tapping into the fitness crowd with partnerships like the one made with the 4th largest energy drink maker in America, C4 Energy. To keep their brand on everyone’s mind while candy is taking a hit, they’re even rolling out Reese’s flavored protein powder. So if people are skipping a Snickers for the gym, Hershey’s is there too, flexing their muscles (pun intended) in a whole new category (energy drinks) worth $21 billion.

Now let's talk about why they could still be a good investment. If you're into stocks that pay you to hang around, Hershey's got your back with an impressive 2.7% dividend yield. They've been growing it at around 10% annually for a decade, and even gave it a nice 15% bump recently. If they were truly in trouble, would they be raising the dividend? Nah, Hershey’s is playing the long game.

Here’s the thing—Hershey’s stock is down, but not out. Their price-to-sales and price-to-earnings ratios are below their five-year averages, meaning you might be getting a solid deal right now. And while short-term pain is real (thanks, cocoa prices), this is Hershey we’re talking about—a company that’s been around for 130 years (almost as old as Civil War history). If you’re thinking long-term and like the idea of holding onto a company that’s proven to come out on the other side no matter what, this one might be for you.

P.S. Last Thursday, we gave our premium members the heads-up on a stock that blew up 140.45% by market close. If you missed it, well, that's like showing up to the party after all the pizza's gone. But hey, redemption is just around the corner—we’ve got another massive opportunity dropping today at 12 PM ET. Click here to become a premium member, or sit this one out and let everyone else feast while you starve.

Stocks.News has positions in Mondelez, General Mills, and Pepsi.