Candy sales are soaring amid increased household penetration and the pre-Halloween craze, according to data compiled by numerator.com. Candy sales increased by 29% in the second half of the year to date, compared to last year, and more than 41% from 2019.
The report also shows that everyday candy continues to dominate sales, with year-over-year growth of 19%, and 24% from its pre-pandemic levels. Here, we look at the top candy stocks to buy as sales surpass pre-pandemic levels.
Mondelez International
Mondelez International Inc. (NASDAQ:MDLZ) shares have swung to a net year-to-date gain of just 4.38%, valuing the stock at an attractive P/E ratio of 20.04.
Moreover, analysts are upbeat about its earnings potential, predicting an annual EPS growth of about 8.89 over the next five years.
Therefore, the stock could be attractive to both short and long-term investors as shares bounce back from the pullback in late September.
Source – TradingView
Technically, the stock seems to be trading within an ascending channel formation in the intraday chart, after bouncing off the crucial support at about $58.20.
However, with shares far from reaching overbought conditions, it may not be too late to buy. Investors could target extended gains at about $61.40 and $62.69, while $59.47 is the immediate support level.
The Hershey Company
The Hershey Co. (NYSE:HSY) shares have spiked recently pushing its P/E ratio above 26.00. The global chocolate manufacturer shares trade at a slightly better forward P/E ratio, implying significant earnings growth expectations.
Analysts forecast its EPS to increase by nearly 12% this year, before rising at an average annual rate of 8.82% over the next five years. It also offers a reasonable forward dividend yield of 2%, making it ideal for different types of investors.
Source – TradingView
Technically, Hershey’s shares trade at a sharp ascending channel formation in the intraday chart, indicating a significant bullish bias in the market sentiment.
However, with shares yet to reach overbought conditions amid a recent pullback, it may not be too late to invest in HSY stock.
Investors could target profits at $182.76 and $185.38, while $178.13 and $175.51 are support levels.
The post Top candy stocks to buy as sales surpass pre-pandemic levels appeared first on Invezz.
