Don't Judge A Candy By Its Cover - Hershey Reportedly Defends Lawsuit Against Reese's Candies
Portfolio Pulse from Lekha Gupta
Hershey is seeking to dismiss a lawsuit alleging misleading packaging of Reese's candies. The lawsuit claims issues with the design of certain candies, but Hershey argues the claims are baseless. Hershey's recent earnings report showed a significant drop in EPS and sales. HSY shares are slightly up premarket.
September 09, 2024 | 12:59 pm
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NEUTRAL IMPACT
First Trust Nasdaq Food & Beverage ETF provides exposure to Hershey, which is currently facing a lawsuit and has reported earnings misses.
FTXG's inclusion of Hershey means it could be indirectly affected by the company's legal and earnings news. However, the ETF's diversified holdings may mitigate the impact.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Hershey is defending against a lawsuit regarding Reese's candy packaging, which it deems baseless. The company recently reported a significant drop in earnings and sales, yet shares are slightly up premarket.
The lawsuit could have a negative impact on Hershey's brand image, but the company's strong defense and the lack of claims regarding product quality may mitigate this. The recent earnings miss is a concern, but the slight premarket increase suggests limited immediate impact.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100
NEUTRAL IMPACT
Investors can gain exposure to Hershey through the Vesper US Large Cap Short-Term Reversal Strategy ETF, which may be influenced by Hershey's legal and earnings news.
UTRN's exposure to Hershey means it could be indirectly affected by the company's legal and earnings news. However, the ETF's broader strategy may dilute the impact.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50