Saturday, September 21, 2013

Will Halloween Help Chocolate and Candy Stocks?

In about a month, trick-or-treaters will be knocking on your door, asking for candy. Stores will be stocked with confectionery offerings, everything from M&M's to Snickers Bars, to Starbursts to Chocolate Hershey Kisses. A dentist's delight! Well, from a health standpoint, all candy isn't all bad. Chocolate has plenty of health benefits. So can these candy and chocolate companies benefit your stock portfolio? has a free list of candy and chocolate companies, with a listing of a dozen stocks. Hershey Foods (HSY) is the large chocolate and confectionery company which is known for its Hershey Bars and Kisses. The stock sports a trailing price to earnings ratio of 29, and a forward P/E ratio of 23. The stock provide a favorable yield of 2.1%. Latest quarterly earnings were reported up 17.6% on a 6.7% boost in revenues.

Tootsie Roll Industries (TR) is a producer of many types of candy for trick-or-treaters including Tootsie Rolls, Tootsie Roll Pops, Caramel Apple Pops, Charms, Blow-Pops, Blue Razz, Zip-A-Dee Pops, Cella's, Mason Dots, Mason Crows, Junior Mint, Charleston Chew, Sugar Daddys, and Sugar Babies. The stock trades at 36 times earnings and pays a yield of 1.0%. Although quarterly revenues were down slightly, earnings rose by 11.4%.

Rocky Mountain Chocolate Factory (RMCF) is a confectionery manufacturer based in Durango, Colorado. The company makes such candies as clusters, caramels, creams, mints, and truffles. The stock trades at 48 times trailing earnings and 16 times forward earnings. The yield is a substantial 3.5%. Earnings spiked 11% on a boost of 5.4% in sales.

More candy and chocolate stock can be found at, which also includes the stock symbol, the P/E ratio, the yield, and the products.

Disclosure: Author did not own any of the above at the time the article was written.


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