Shares of Hershey (HSY) have soared to $138 from $105 so far this year, and that's for good reason, Jim Cramer explained on Wednesday night's "Mad Money."
The candy maker has gone through a remarkable turnaround over the past two years, Cramer said, and deserves a spot on your shopping list, as the company has successfully diversified away from candy and into the lucrative and fast-growing snack-food business. Yet, trading at 24 times earnings, Cramer said shares are getting expensive.
We recommended HSY on June 6, but it doesn't hurt to take another bite of the charts. In this updated daily bar chart of HSY, below, we can see that the chart and the indicators have remained strong. Both the 50-day and the slower-to-react 200-day moving averages have positive slopes. The daily On-Balance-Volume (OBV) continues to rise with the bullish price action and the Moving Average Convergence Divergence (MACD) oscillator is still rising.
In this weekly bar chart of HSY, below, we can see that the bulls remain in control. Prices are above the rising 40-week moving average line. The weekly OBV line continues to tell us that buyers of HSY have been more aggressive. The MACD oscillator is in a bullish mode rising well above the zero line.
In this Point and Figure chart of HSY, below, we can see an upside price target of $174.
Bottom line strategy: Continue to hold longs recommended last week. Traders could raise sell-stops to below $130 from below $125.