Many food manufacturers have done well because consumers having been spending more time at home and eating in, but Hershey is optimistic it will still do well even if that isn't the case.
Previously, Hershey was projecting its net sales to rise between 2% and 4% this year. Now, however, it is anticipating revenue growth between 4% and 6%. It forecasts that earnings per share will also grow by as much as 12% in 2021.
Although the company expects higher input costs to drive down some of its profitability, it believes that will be offset by higher volumes due to more merchandising opportunities and incremental distribution, presumably as the economy continues to open back up and get back to normal.
Over the years, Hershey has been a fairly stable investment, averaging a beta of around 0.35, suggesting that it is far less volatile than the markets. For long-term investors, Hershey could be a great dividend stock to add today.