Wall Street closes at a record for the first time since end of January
The calendar may say it’s spring, but it’s been looking a lot like Christmas for candy stocks. That’s because investors know that Halloween and Christmas are the warm-up acts for chocolate lovers. The real action comes around Easter and Mother’s Day.
That investor interest has allowed several well-known candy stocks to post positive returns in 2026. That pattern has continued despite the broader drawdown in many other sectors, including consumer staples.
However, investors on the sidelines may wonder if all the upside is gone. That question may have much to do with cocoa prices and tariffs for future sales. If those headwinds lessen throughout 2026, analysts may want to rethink their outlook for each stock. Even if input costs remain elevated, the companies have now had a year to strategize to lessen the impact.
That said, these stocks are not cheap. Each of these stocks has a price-to-earnings (P/E) ratio well above the broader market and the sector average for consumer staples stocks. On the other hand, these stocks also pay sustainable dividends that provide income even if the growth slows.
1. Hershey Balances Cocoa Costs With Snack Growth
The Hershey Company is an iconic company that has continued to deliver value to consumers and shareholders. One example of that is the company’s strategic pivot to add salty snacks to its portfolio. This category was a key growth driver in 2025, particularly given the legacy confectionery business’s exposure to higher cocoa prices.
That was evident in the company’s Q4 2025 earnings report, in which the company beat adjusted earnings per share (EPS) expectations by over 20%. Even though that number was down 36% from the prior year, it came in much better than feared.
Analysts are mixed on HSY stock, which has a consensus price target of around $222, about 10% above its current price. The chart is also a bit mixed. HSY stock gapped up after the February earnings report, but it’s given up those gains since.HSY chart displaying the stock having given up its post-earnings gains.
The question is why? Momentum indicators suggest this may simply be profit-taking on a stock trading at a rich 46x earnings. Traders may want a better entry point, but long-term investors can view the current level as a buying opportunity.
2. Mondelez Offers Steady Growth at a Reasonable Premium
Mondelez International is the preferred candy stock for many investors who choose to own only one. The stock is up only about 6% in 2026 and down almost than 15% over the last 12 months. However, this could be a slow-but-steady story for patient investors.
First, Mondelez appears to be the choice of institutional investors. Unlike Hershey, which institutions sold hard in the last quarter, the “smart money” has been modestly accumulating MDLZ stock.
Second, the stock chart of Mondelez is also the most Goldilocks of these three stocks. Like HSY stock, it showed a strong bounce after its quarterly earnings. However, the beats in earnings were modest, as was the stock bounce. That said, MDLZ has given up those gains, but it has formed a solid base above its January low, which is likely to give the stock a base to climb higher.
Also, at 30x earnings, Mondelez is trading at a premium. However, at 18x forward earnings, the stock is offering solid value.
3. Tootsie Roll’s Niche Appeal Could Deliver Upside
Tootsie Roll stock, like its namesake candy, is an acquired taste. The analyst forecasts on MarketBeat show only one analyst covering the stock, which enjoys only about 14% institutional ownership.
That’s both a risk and an opportunity for retail investors. On the one hand, the lack of institutional support and analyst coverage means individual investors will have to work hard to lift the stock. On the other hand, that’s where asymmetric gains can come from.
That setup could be showing up on the TR stock chart. Investors sold the stock hard after the company’s Q4 2025 earnings report despite year-over-year gains in revenue and earnings. However, since then the stock has ground higher, reversing those losses.TR chart showing the stage set for a move higher.
But first, investors will need to see continued progress on earnings growth. To that end, 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 that’s the case, TR stock could offer exceptional value even as it trades at around 32x earnings, a premium to its historic average.