Hershey Stock: Jim Cramer Says He Would Buy Now Amid 'Next Inflation Scare'

• On Monday, Jim Cramer of CNBC recommended that investors include Hershey stock in their portfolios.
• The host of "Mad Money" stated that Hershey's is the most consistent growth stock in a group where safety is the top priority, and it's important to remember that safety never takes a break. The host advised buying some shares now and waiting to buy more if the stock experiences a dip during the next inflation scare.

On Monday, CNBC's Jim Cramer recommended adding stock to investors' portfolios.

The host of "Mad Money" stated that Hershey's is the most consistent growth stock in a group where safety is the top priority, and it's important to remember that safety never takes a break. The host advised buying some shares now and waiting to buy more if the stock experiences a dip during the next inflation scare.

On Monday, Hershey stock increased by 0.09% to $223.93, reaching a new 52-week high of $226.45 earlier in the day. Despite this, the company fell short of Wall Street expectations in their fourth quarter earnings.

Cramer stated that Hershey, a confectionery maker, has outperformed the group in the era of inflation, yet it remains one of the best kept secrets in the market.

In recent years, Hershey has expanded its brand offerings by acquiring Pirate's Booty, SkinnyPop-parent Amplify Snack Brands, and Dot's Pretzels. According to Cramer, these acquisitions were ideal as Covid forced people to stay at home and increased their snacking habits.

Hershey's "awesome pricing power" was praised by him, which he stated provides the company with a competitive edge over struggling competitors with rising raw costs, thereby boosting Hershey's sales growth and gross margin.

The company anticipates higher pricing in the first half of 2021 and predicts tougher gross margins, but expects gross margins to gradually improve as they approach the end of 2022.

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