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Further Reading from MarketBeat.com
3 Candy Stocks Getting a Spring Sugar RushWritten by Chris Markoch. Date 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. That’s because investors know Halloween and Christmas are just warm-up acts for chocolate lovers. The real action comes around Easter and Mother’s Day. That seasonal demand has helped several well-known candy stocks post positive returns in 2026, even as many other sectors—including consumer staples—have pulled back.
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Still, investors on the sidelines may wonder whether the upside is largely priced in. Much of that outlook depends on cocoa prices and tariffs affecting cocoa purchases. If those headwinds ease in 2026, analysts may revise their outlooks. Even if input costs remain elevated, these companies have had a year to implement strategies to mitigate the impact. That said, these stocks are not cheap: each carries a price-to-earnings (P/E) ratio well above the broader market and the consumer staples sector average. On the other hand, they pay relatively sustainable dividends that can provide income even if growth slows. Hershey Balances Cocoa Costs With Snack GrowthThe Hershey Company (NYSE: HSY) remains an iconic brand that continues to deliver value to consumers and shareholders. One example is the company's strategic pivot to build out its salty snacks portfolio—a key growth driver in 2025—which helps offset the legacy confectionery business’s exposure to higher cocoa costs. That showed up in Hershey’s Q4 2025 earnings report, where adjusted earnings per share (EPS) beat expectations by over 20%. Although EPS declined 36% year over year, the result was materially better than feared. Analysts are mixed on HSY, with a consensus price target near $222, roughly 10% above the current price. The technical picture is mixed as well: HSY gapped up after its February earnings report but has since given up those gains. Momentum indicators suggest some of this may simply be profit-taking on a stock trading at a rich ~46x earnings. Traders may wait for a better entry, while long-term investors could view the current level as an attractive opportunity. Mondelez Offers Steady Growth at a Reasonable PremiumMondelez International (NASDAQ: MDLZ) is often the go-to candy stock for investors who want a single, diversified confectionery name. The stock is up about 6% in 2026 but down nearly 15% over the past 12 months. For patient investors, it could be a slow-but-steady story. First, Mondelez appears to be favored by institutional investors; unlike Hershey—which saw heavy institutional selling last quarter—the “smart money” has modestly accumulated MDLZ shares (institutional ownership data). The technicals look balanced. Like HSY, MDLZ rallied after earnings, but the beats were modest and so was the bounce. The stock has since given up those gains but has formed a solid base above its January low, which could support a further advance. 
Valuation is a mixed picture: Mondelez trades at roughly 30x trailing earnings, which is a premium, but closer to 18x on forward earnings—suggesting a more reasonable valuation relative to expected growth. Tootsie Roll’s Niche Appeal Could Deliver UpsideTootsie Roll (NYSE: TR) is an acquired taste. MarketBeat shows only one analyst covering the stock, and institutional ownership is modest—about 14%. That lack of institutional support and analyst coverage is both a risk and an opportunity. Without the backing of big institutional buyers, individual investors may need to work harder to move the stock, but that also creates room for asymmetric gains. The TR chart may already be reflecting that dynamic. Shares sold off after Q4 2025 results despite year-over-year revenue and earnings gains, but the stock has since ground higher and recovered those losses. Crucially, 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 cocoa-related costs fall as expected, Tootsie Roll could see meaningful margin improvement. Even trading at around ~32x earnings—a premium to its historical average—TR could offer attractive upside if management executes and input-cost headwinds subside.  
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