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Benzinga
32 days

Hershey Could Get Q3 Sugar Rush Thanks To A Cocoa Crash

1. Cocoa futures have dropped to lowest levels since November. 2. Hershey's stock fell 11% due to record cocoa prices. 3. Lower cocoa costs may enhance Hershey's gross margins this quarter. 4. Hershey can potentially regain market share as cocoa prices decline. 5. Consumer sentiment stabilizing may benefit Hershey's sales recovery.

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FAQ

Why Bullish?

With cocoa prices falling, Hershey's margins may improve. Similar situations previously led to stock recoveries.

How important is it?

Cocoa price trends heavily influence Hershey's profitability and investor outlook.

Why Short Term?

The immediate effect from cocoa price declines could prompt improved earnings soon.

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