Estée Lauder Companies vs Hershey

Estée Lauder Companies and Hershey are compared to illuminate differences in business models, financial performance, and market context in clear, accessible language. This page presents neutral, balanced analysis of how each company operates, performs, and positions itself within its market. It highlights key drivers, competitive landscape, and strategic priorities without prescribing outcomes. Educational content, not financial advice.

Estée Lauder Companies and Hershey are compared to illuminate differences in business models, financial performance, and market context in clear, accessible language. This page presents neutral, balan...

Comparison Snapshot

Key Financial Metrics

EL

Metric

HSY

$39.15B

Market Cap

$45.14B

-1.84%

Potential Profit

-13.56%

Hold

Analyst Rating

Hold

Why It's Moving

EL Stock Warning: Why Analysts See Downside Risk Despite Earnings Beat and Raised Outlook

Q2 EPS hit $0.89, topping $0.83 consensus by 7%, with operating income jumping to $608 million adjusted on PRGP savings funding consumer investments.
Fiscal 2026 guidance lifted to 3-5% sales growth and $2.05-$2.25 EPS, signaling first organic sales rebound in years, but flagged $100 million tariff hit and travel retail weakness.
Analysts mixed: Citigroup upgraded to Buy at $120, but Wells Fargo and JP Morgan cut targets to $105-$121, consensus at $108 with 'Hold' rating amid recent 16% weekly drop.

Sentiment:

🐻Bearish

HSY Stock Warning: Why Analysts See -15% Downside Risk

Hershey beat Q4 2025 estimates with $1.71 EPS versus $1.40 expected and 7% revenue growth to $3.09B, yet overall consensus remains 'Hold' with median targets implying 15% drop.
Firm issued 2026 outlook for 4-5% sales growth and $8-$9 EPS, backed by $230M efficiency savings and 9% pricing hikes to counter 3% volume declines and cocoa swings.
Mixed analyst moves include Stephens hiking target to $260 with 'overweight,' but broader Street skepticism persists as shares trade above average $203-$220 forecasts.

Sentiment:

🐻Bearish

EL Stock Warning: Why Analysts See Downside Risk Despite Earnings Beat and Raised Outlook

Q2 EPS hit $0.89, topping $0.83 consensus by 7%, with operating income jumping to $608 million adjusted on PRGP savings funding consumer investments.
Fiscal 2026 guidance lifted to 3-5% sales growth and $2.05-$2.25 EPS, signaling first organic sales rebound in years, but flagged $100 million tariff hit and travel retail weakness.
Analysts mixed: Citigroup upgraded to Buy at $120, but Wells Fargo and JP Morgan cut targets to $105-$121, consensus at $108 with 'Hold' rating amid recent 16% weekly drop.

Sentiment:

🐻Bearish

HSY Stock Warning: Why Analysts See -15% Downside Risk

Hershey beat Q4 2025 estimates with $1.71 EPS versus $1.40 expected and 7% revenue growth to $3.09B, yet overall consensus remains 'Hold' with median targets implying 15% drop.
Firm issued 2026 outlook for 4-5% sales growth and $8-$9 EPS, backed by $230M efficiency savings and 9% pricing hikes to counter 3% volume declines and cocoa swings.
Mixed analyst moves include Stephens hiking target to $260 with 'overweight,' but broader Street skepticism persists as shares trade above average $203-$220 forecasts.

Sentiment:

🐻Bearish

Investment Analysis

Estée Lauder Companies

EL

Pros

Estee Lauder Companies reported a 3.6% year-over-year revenue increase in the latest quarter, beating earnings estimates with $0.32 EPS.
Analysts from JPMorgan Chase and Goldman Sachs have raised price targets and ratings, reflecting positive growth expectations and potential upside near 19%.
The company maintains a solid current ratio of 1.32, indicating reasonable short-term liquidity relative to many peers.

Considerations

The firm had a negative net margin of 7.91%, suggesting profitability challenges despite revenue growth.
Operating profit was negative at -$260.4 million recently, reflecting increased operating expenses and margin pressure.
Estee Lauder carries sizable debt of $7.32 billion, with interest expense impacting net results.

Hershey

HSY

Pros

Hershey maintains a strong current ratio around 1.53, indicating robust liquidity to cover short-term liabilities.
The company benefits from a historically resilient confectionery market with relatively stable demand.
Hershey’s strong brand portfolio and consistent cash flow generation support its financial stability and growth potential.

Considerations

Hershey faces exposure to commodity price volatility, particularly sugar and cocoa, which can pressure margins.
The company operates in a competitive market with risks from new entrants and changing consumer preferences.
Regulatory risks related to health and nutrition trends could impact product demand, requiring costly adaptations.

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