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Further Reading from MarketBeat Media
3 Candy Stocks Getting a Spring Sugar RushWritten by Chris Markoch. Article Posted: 4/3/2026. 
Key Points
- Candy stocks are outperforming in 2026 as seasonal demand and pricing power help offset higher cocoa costs.
- Hershey and Mondelez remain dominant players, while Tootsie Roll offers a more speculative, underfollowed opportunity.
- Despite premium valuations, these stocks may continue delivering returns through dividends and strategic cost management.
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The calendar may say it’s spring, but it’s been looking a lot like Christmas for candy stocks. Investors know that Halloween and Christmas are warm-up acts for chocolate lovers — the real action often comes around Easter and Mother’s Day. That seasonal interest has helped several well-known candy companies post positive returns in 2026, a pattern that has persisted despite the broader pullback in many other sectors, including consumer staples.
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Still, investors on the sidelines may wonder whether the upside is already priced in. Much depends on cocoa costs and any tariffs affecting future purchases. If those headwinds ease through 2026, analysts may revise their outlooks. Even if input costs remain elevated, these companies have had time to implement strategies to mitigate the impact. That said, these stocks aren’t cheap. Each carries a price-to-earnings (P/E) ratio well above the broader market and the consumer staples sector average. On the plus side, they pay sustainable dividends that provide income even if growth slows. Hershey Balances Cocoa Costs With Snack GrowthThe Hershey Company (NYSE: HSY) remains an iconic consumer brand that continues delivering value to customers and shareholders. One example is its strategic expansion into salty snacks — a key growth driver in 2025 that helps offset the legacy confectionery business's exposure to higher cocoa prices. That resilience showed up in the company’s Q4 2025 earnings report, where Hershey beat adjusted earnings-per-share expectations by more than 20%. Although adjusted EPS was down 36% year-over-year, the result was much better than feared. Analysts are mixed on HSY, which has a consensus price target near $222, roughly 10% above the current price. The technical picture is mixed as well: HSY gapped up after the February earnings report but has since given back those gains. Momentum indicators suggest this may be profit-taking on a stock trading at a rich ~46x earnings. Traders may wait for a better entry point, while long-term investors could view the current level as an opportunity to buy. Mondelez Offers Steady Growth at a Reasonable PremiumMondelez International (NASDAQ: MDLZ) is many investors’ preferred single exposure to the candy space. The stock is up about 6% in 2026 but down roughly 15% over the past 12 months. For patient investors, this could be a slow-but-steady story. Institutional investors appear to favor Mondelez: unlike Hershey, which saw significant institutional selling last quarter, the “smart money” has been modestly accumulating MDLZ shares. Technically, Mondelez looks the most Goldilocks of these three names. It posted a modest earnings beat and a corresponding modest bounce after its quarterly report. Although MDLZ has surrendered some of those gains, it has formed a solid base above its January low, which could support a move higher. Valuation looks reasonable: MDLZ trades at about 30x trailing earnings but near 18x forward earnings, suggesting solid value for the growth profile. Tootsie Roll’s Niche Appeal Could Deliver UpsideTootsie Roll (NYSE: TR) is, like its namesake candy, an acquired taste. MarketBeat’s analyst forecasts list only one analyst covering the stock, and institutional ownership is about 14%. That limited coverage is both a risk and an opportunity. The lack of institutional support means retail investors must do the heavy lifting to move the stock, but it also creates the potential for asymmetric gains if fundamentals improve. That dynamic appears to be playing out on the TR chart. Shares fell sharply after the company’s Q4 2025 earnings report despite year-over-year revenue and earnings gains. Since then, the stock has slowly climbed back, reversing those losses. Investors will want to see continued earnings progress. Management noted that, “During fourth quarter 2025, tariffs on cocoa were rescinded and therefore we should realize some additional cost reductions on these purchases in 2026.” If those savings materialize, TR could offer meaningful upside even while trading at roughly 32x earnings, a premium to its historic average.  
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