Post #488 by mungofitch on the Falling Knives board

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Maybe Hershey will not get the mid twenties PE as a consistent solid growth moaty company that it did in the past. Is it going the way of Nestle and Coke with virtually no growth and investors will have to settle for a much lower PE?

It's a possibility. But oddly it hasn't happened to Coke yet! No real growth for ages, but still trading at 26 times typical earnings. Go figure.

My happy vision is that at some point in the next (say) 6 quarters Hershey will start seeing earnings estimate upgrades instead of downgrades, and they'll go back into fashion. Meanwhile, the business isn't going away, and they're still the biggest confectioner in the US.

Jim

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