HSY

Last but not least, Hershey's, the world's leading chocolate retailer. This company is sold for $179, and I have calculated a fair value for it of $244.

This is another category where the advantages of large size are difficult to overcome. For reasons similar to those that give Procter & Gamble significant and sustained competitive advantages, Hershey's has very similar competitive advantages.

Despite the recent price volatility in the cocoa market, Hershey's management team is confident that 2027 will bring price deflation. In other words, Hershey's management team is forecasting declining cocoa prices in 2027.

And since that's a major input to the company's process, the lower cost of inputs should improve the company's margin profile in 2027 and probably beyond. But does this make Hershey's stock a buying opportunity?