12 Best Chocolate Stocks to Buy According to Hedge Funds

5. The Hershey Company (NYSE:HSY) 

Number of Hedge Fund Holders: 33

One of the Best Chocolate Stocks, The Hershey Company (NYSE:HSY), a chocolatier established in the United States, is responsible for some of the world’s most popular candies. Aside from the several products carrying its name, the company manufactures Reese’s, Almond Joy, Heath, Milk Duds, York mint patties, and others, as well as a diverse baked product line.

The Hershey Company (NYSE:HSY) is one of the fastest-growing chocolate companies in the world. Since its snacks and sweets brands have stayed popular in North America and entered new markets globally, total sales have increased by about 50% over the last ten years. The expansion this company provides is complemented by its dividend, which has been increasing nearly annually for decades.

Discussions about The Hershey Company (NYSE:HSY) have been common lately, especially because of the pressure on its stock price. Nevertheless, as seen by its return on invested capital, the company’s dominant U.S. market share, robust pricing power, high operational margins, and disciplined capital allocation continue to give it a competitive edge. The company’s position has been further reinforced by its diversification strategy, which includes its entry into the salty snack market. Additionally, the company’s succession planning, led by Michele Buck, provides assurance that the firm’s culture will endure after her eventual retirement.

In the fourth quarter of 2024, consolidated net sales climbed 8.7% year over year to $2,887.5 million. The planned inventory declines within North America Salty Snacks related to the Q4 2023 ERP implementation, favorable net price realization of about 3 points, two extra shipping days, and inventory timing benefits were the main drivers of the 9.0% increase in organic, constant currency net sales.

Ken Griffin’s Citadel Investment Group was the largest stakeholder in the company among the funds in Insider Monkey’s database at the end of Q3 2024. It owns 503,200 shares worth $96.50 million as of Q3.