Thursday, June 30, 2016

Snorting Chocolate is the Latest Party Drug: Will Chocolate Stocks Get High?

Last month, an article appeared on Ozy discussing how young Western Europeans are now using a popular drug called cacao. This is more commonly known as chocolate. Partiers are taking it in powdered pill form, in drinks, and snorting it. Of course, it is 100% legal.

Will chocolate replace ecstasy and cocaine for party goers? If it does, there are several ways to invest in the chocolate industry.

Based on the free list of candy and chocolate stocks at, there are a dozen candy related stocks available to investors, and almost all of them sell chocolate.

One of the most famous chocolate companies is the Hershey Company (HSY), the largest chocolate manufacturer in North America. The stock trades at 49.3 times trailing earnings and 24.6 times forward earnings. Earnings for the latest quarter were down 6.1% on a 5.6% drop in revenues. The company pays a yield of 2.4%.

Another popular chocolate company is Nestle (NSRGY), the largest food company in the world. It sells all types of food and beverages, so chocolate is only a small part of the business. The stock trades at 25.7 times trailing earnings and 22.5 times forward earnings. Earnings tanked by 53.7% for the latest quarter.

Rocky Mountain Chocolate Factory (RMCF) is one of the few chocolate companies that appears to be growing, in terms of earnings. The stock has a price to earnings ratio of 14 and pays a mouth watering yield of 4.9%. Earnings were up an amazing 76.1% on relatively flat revenues.

To access a free list of all the chocolate and candy companies, go to Hopefully one of these companies will give you a tasty return for your portfolio.

Disclosure: Author didn't own any of the above at the time the article was written.



Anonymous said...

I guess Mondelez must have read your article since they made an attempt at takeover of Hershey, causing the stop to increase by over 16% in one day.

Stockerblog said...

Yes, I wouldn't be surprised if we saw more attempts at takeovers of chocolate companies. I believe chocolate is a growth industry.