Dear Reader,
I’ll be brief as the opportunity ahead is urgent.
There’s a semiconductor company that supplies both Apple and SpaceX … that’s absolutely ON FIRE here in 2026.
The Wall Street Journal just reported in June that this company DOUBLED its data center revenue forecast to $1 BILLION (up from its prior forecast of $500M).
“Surging demand for the building blocks of AI has led to a memory chip shortage and fueled a global rally in semiconductor stocks,” WSJ reported.
Morningstar raised its prior forecasts on this company: “We think the company is in a nice position in the artificial intelligence infrastructure buildout
Michael Robinson
Lead Technology Strategist, Weiss Ratings
P.S. This company also said its chip shipments to SpaceX could DOUBLE by 2027.
Investors Are Buying Into Sweetgreen Again—Should They?
By Jennifer Ryan Woods. Article Published: 6/22/2026.
Key Points
- Sweetgreen shares have surged more than 60% over the past three months despite another disappointing earnings report, suggesting investors may be looking beyond recent results and focusing on signs of a turnaround.
- While Wall Street remains cautious, improving traffic trends and early signs of progress in the company's turnaround plan seem to have fueled optimism around the stock.
- Analyst upgrades, declining short interest, and insider buying all suggest confidence in Sweetgreen may be starting to improve.
- Special Report: SpaceX is offering you shares. Don't take them.
Shares of Sweetgreen Inc. (NYSE: SG) have surged 60% over the past three months, rebounding from a steep selloff that began in late 2024 as concerns about slowing consumer demand mounted. The rally has some questioning whether the company's turnaround efforts are finally gaining traction or whether the stock is simply bouncing back from deeply oversold levels.
Sweetgreen's core business remains unprofitable, and the company has missed Wall Street expectations more often than not since going public, including in the most recent quarter, reported on May 8.
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The Wall Street Journal is already raising the alarm about a potential market crash, and Weiss Ratings research points to the first half of 2026 as a particularly rough stretch for certain holdings.
Some of America's most popular stocks could take serious damage as a radical market shift plays out. Analysts at Weiss Ratings have identified five names you may want to remove from your portfolio before this unfolds.
If any of these are in your portfolio, now is the time to review your positions.
See the 5 stocks to avoidStill, encouraging comments about its turnaround efforts appear to have sparked fresh optimism.
Sweetgreen Shares Have Surged Since Hitting March Low
The fast-casual chain, known for its salads and other healthy menu items, went public in late 2021, and its shares initially soared. However, those gains were short-lived, and the stock spent much of the next few years under pressure as the company struggled to turn a profit.
In 2024, things started to look up. The stock rose from around $10 in January to above $44 by November. But as concerns about slowing consumer demand emerged, those gains quickly unraveled. By March 2026, the stock had plunged to an all-time low of $4.49. Since then, shares have rebounded sharply, surging nearly 100%.
The catalyst does not appear to have been the company's most recent earnings report. Sweetgreen posted a first-quarter loss of 27 cents per share, wider than the 21-cent loss reported a year earlier and worse than Wall Street's estimate for a 23-cent loss. Revenue of roughly $162 million fell nearly 3% year over year and missed expectations by about $2 million. The results marked the company's fourth consecutive earnings and revenue miss and its third straight quarter of declining revenue.
Turnaround Plan Is Showing Signs of Traction
Despite the disappointing earnings report, comments about Sweetgreen's Sweetgrowth Transformation Plan, launched in November 2025 to help turn the business around, seemed to spark optimism among investors.
During the earnings call, co-founder and Chief Executive Jonathan Neman said, "We are beginning to see signs that the actions we are putting in place are gaining traction. We are seeing improvement in execution across our restaurants, greater consistency in the guest experience, and stronger alignment across our teams."
He added, "We saw improvement as the quarter progressed with a further step up in April."
Neman also expressed enthusiasm about the recent addition of wraps to the menu, which he described as Sweetgreen's "most significant menu expansion in several years." The company expects wraps to help drive traffic while making the brand more accessible because of their lower price point.
Sentiment Has Improved, But Wall Street Remains Cautious
Investors appeared encouraged by the company's comments about improving trends. In the weeks following the report, five analysts raised their price targets on the stock, while two upgraded their ratings.
Even with the recent upgrades, Wall Street remains somewhat cautious. The consensus rating on Sweetgreen is Hold, based on 12 Hold ratings, four Buys, and three Sells. Most analysts are not expecting meaningful upside over the next year. The average 12-month price target of just above $8 is roughly 5% below the current share price. Price targets range from a low of $4.50 to a high of $15.
There are other indicators that sentiment may be improving as well. The number of shares sold short has fallen from roughly 25 million, or nearly 27% of float, at the end of March to less than 20 million, or roughly 20% of float, as of the most recent reporting period at the end of May. While the stock remains heavily shorted, some bearish investors appear to be backing away from the name.
Insiders also appear to be expressing confidence in the company. Over the past three months, Sweetgreen insiders purchased roughly $3.4 million worth of company stock. No insider sales were reported.
Despite Recent Rally, Stock Remains Well Below Highs
Even after the recent rally, Sweetgreen shares are still trading around $9, well below their July 52-week high of $16.70 and far below the more than $44 level reached in November 2024.
The stock's steep decline has left Sweetgreen trading at a discount to several peers in the fast-casual restaurant sector, which could help explain the renewed interest in the shares.
On a price-to-sales basis, Sweetgreen stock trades at less than 1.6X sales, compared with roughly 8.3X for CAVA Group Inc. (NYSE: CAVA), 3.4X for Chipotle Mexican Grill, Inc. (NYSE: CMG), and 6.1X for Wingstop Inc. (NASDAQ: WING). Shake Shack Inc. (NYSE: SHAK), which plummeted after reporting disappointing Q1 results, is the closest comparison, trading at 1.7X sales.
Sweetgreen's rebound likely began as investors saw value in a stock that had been heavily sold off. More recently, however, signs of progress in the company's turnaround efforts appear to have provided additional support for the rally.
While the company's financial results still leave plenty of room for improvement, investors seem increasingly focused on what comes next. The second-quarter earnings report in August should provide a clearer indication of whether the recent improvement in traffic trends continued and whether Sweetgreen is beginning to translate those gains into stronger financial performance.
Hershey Stock May Be Near a Sweet Spot as Cocoa Pressure Eases
By Peter Frank. Article Published: 7/1/2026.
Key Points
- Hershey’s first-quarter results showed stronger sales, earnings and margins as pricing helped offset cocoa and tariff-related costs.
- Lower cocoa prices could support margin recovery, but commodity volatility and consumer demand remain key risks.
- Hershey’s ONE Hershey operating model may help align its sweet, salty and protein brands, but analysts remain cautious on the stock.
- Special Report: SpaceX is offering you shares. Don't take them.
After a strong run in February, Hershey (NYSE: HSY) is now trading 3.8% below its year-start price.
But while the share price has been stuck in place, the company’s outlook has improved. Hershey has overcome soaring cocoa costs with impressive pricing power, and easing commodity pressures are creating the potential for a margin recovery.
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The Wall Street Journal is already raising the alarm about a potential market crash, and Weiss Ratings research points to the first half of 2026 as a particularly rough stretch for certain holdings.
Some of America's most popular stocks could take serious damage as a radical market shift plays out. Analysts at Weiss Ratings have identified five names you may want to remove from your portfolio before this unfolds.
If any of these are in your portfolio, now is the time to review your positions.
See the 5 stocks to avoidMost analysts rate it a Hold, with 20% upside, as the balance between pricing and demand continues to play out. Yet with loyal customers and a pipeline of new products, the company appears well-positioned if current trends hold.
Hershey's Pricing Power Is Paying Off
What hurt the company recently was a well-known event. Cocoa prices surged to historic highs in late 2024 and 2025, squeezing the margins of chocolate makers around the world. Hershey saw its net income drop from $797 million in the fourth quarter of 2024 to $224 million in the next quarter of 2025, and then to $63 million in the following quarter.
For Hershey, which generated annual sales of $11.7 billion last year and has a market capitalization of around $36 billion, the shock also came at an awkward moment. The company was already pursuing a broader portfolio reorganization, with greater emphasis on salty snacks, including Dot's Homestyle Pretzels, LesserEvil and SkinnyPop, as well as protein products such as Fulfil bars in North America.
Sales and Earnings Rebound Despite Higher Costs
When cocoa prices soared, the story for Hershey shifted from long-term growth to short-term damage control. As a result, the company leaned into its pricing power. By the end of last year, organic price realization, or the benefit from price increases, rose 6% in the fourth quarter of 2025 and then accelerated to 10% in the first quarter of 2026. Consumers may have grumbled, but they kept buying.
The first-quarter 2026 results told the broader story. Consolidated net sales reached $3.1 billion, up 10.6% from $2.8 billion a year earlier. Adjusted earnings per share came in at $2.35, an increase of 12.4% and well above analyst estimates, compared with $2.09 in the prior-year period. Reported net income was $435 million, or $2.13 per share, versus $1.10 a year earlier.
Operating results were also sharply higher. First-quarter reported operating profit rose 73.5% to $640.7 million, while the profit margin reached 20.6%, up 7.4 points from last year. The company said higher sales and prices helped offset increased commodity and tariff-related costs.
Looking ahead, management reaffirmed its full-year guidance for 4% to 5% net sales growth and 30% to 35% adjusted earnings per share (EPS) growth. Full-year adjusted EPS is projected to come in between $8.20 and $8.52, compared with $6.31 in 2025.
Lower Cocoa Prices Could Boost Margins
The success of its salty snacks was evident in North America, which reported $2.5 billion in net sales. That segment posted an acquisition-led 26% year-over-year increase, while North American confectionery products rose 8.3%.
The cost picture is improving, but it is not yet resolved. In the previous quarter, gross margin fell 17 percentage points to 37% as cocoa prices remained high. Even in the first three months of 2026, adjusted gross margin rose to 40.4%, but it was still down 80 basis points year over year due to elevated commodity and tariff-related costs.
The encouraging development is that cocoa prices have fallen sharply from their late-2024 and early-2025 highs, which were well above $10,000 per metric ton. After dropping below $4,000 earlier this year, the commodity is currently trading near $5,000.
ONE Hershey Aims to Drive Long-Term Growth
Beyond cocoa, the company is making other structural moves.
In March, the company announced the unification of its sweet, salty and protein brand portfolios under an integrated operating model called ONE Hershey. By bringing its products under a single umbrella, the company hopes to better align strategy, cross-selling, brand messaging, in-store performance and innovation.
The initiative also comes during a period of top management changes. A new president and CEO took over last August, and more recently, a new president of U.S. operations was appointed to oversee the integrated businesses.
Analysts See Upside But Remain Cautious
The financial picture surrounding the stock reflects the tension between the company’s quality and the cost environment.
Over the past 52 weeks, Hershey has traded between $160 and nearly $240 per share. At current levels around $175 per share, its price/earnings ratio of more than 33 is not cheap, and the consensus among 23 analysts is that the stock is currently a Hold. Sixteen analysts recommend a Hold, and seven recommend a Buy.
With an average 12-month price target of $217.50, the stock’s implied upside is above 20%. The highest price target is $260 and the lowest is $185, suggesting real uncertainty about the pace of margin recovery.
Hershey also carries a sizable quarterly dividend of $1.45 per share for a yield above 3%. The company has raised its dividend for 15 consecutive years.
The Next Few Quarters Could Be Critical
Whether the momentum Hershey has built continues will soon be seen in its second-quarter earnings.
The key questions are whether its pricing power has held and how much lower cocoa costs will help. New management will also help set the direction.
For investors, Hershey presents a choice between patience and precision. It is a category-leading company with a storied brand in the consumer staples sector. It has proven pricing power, a 15-year dividend growth streak and a commodity headwind that appears to be easing. The next quarter or two should show whether the trajectory continues.
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