JimVanMeerten (45.53)

Hershey is a buy

July 07, 2011 – Comments (0) | RELATED TICKERS: HSY

Complete Article and Graphs

This morning I was interested in using Barchart to screen for the S & P 500 stock that had the most frequent new highs and Hersey (HSY) was right near the top of the list with 16 new highs and a price increase of 6.79% in just the last month. The market as measured by the Value Line Index had 9 new highs and was up 5.90% for the same period.

Barchart technical indicators:
1 - 96% Barchart technical buy signal

2 - Trend Spotter buy signal

3 - Above its 20, 50 and 100 day moving averages

4 - 16 new highs and up 6.79% in the last month

5 - Relative Strength Index is 68.13% and rising

6 - Trades around 57.87 with a 50 day moving average of 55.87

Summary:  Although I believe the stock is fully priced Hershey (HSY) is still a buy for long term conservative investors.  The stock has a 100% price stability score so its pretty predictable.  With a 2.5% dividend and projected earnings increases long term investors could see a total annual return in the 5% - 6% bracket over the next 5 years.

Jim Van Meerten is a Marketocracy Master