3 Candy Stocks for Halloween 2021 and Beyond

I don’t know about you but I feel as though it’s been years since we had a real holiday. Even though most holidays happened in a limited capacity last year, it just wasn’t the same. Due to this, I’ve been really feeling the spirit for every holiday that comes up recently. And the candy stocks below should see higher sales.

In October alone I’ve carved a pumpkin, gone to an amusement park fright night, drank Trader Joe’s spiced cider and even baked a pie. I want to do all the Fall stuff.

While it’s fun to start doing normal activities again, this could also be emblematic of a bigger picture. If other people are also experiencing a major second wind for holidays then it could provide a big boost for companies that profit off these holidays.

In particular, many people might anticipate a high number of trick or treaters. This would cause them to stock up on much more Halloween candy than normal. If this happens then candy stocks could be poised to have a big quarter.

It’s worth noting that Halloween isn’t nearly as big of a spending holiday as others are. For example, Christmas, Thanksgiving and even Valentine’s Day are probably bigger holidays in terms of the money that consumers spend. However, Halloween is unique because people’s spending is concentrated. During Halloween, people only spend money on three things. They buy costumes, decorations and (most importantly) candy.

If you are reading this now, it might feel as if it’s too late to take advantage of this information. However, keep in mind that a spike in candy sales would not actually be reported until the next earnings report. This means that a candy stock could surge in a few months once higher-than-expected Halloween sales are actually confirmed.

With that said, let’s take a look at three candy stocks to buy.

Candy Stocks to Buy

Note: I’m not a financial advisor and am just offering my own research and commentary. Please do your own due diligence before making any investment decisions.

3. Dollar General (NYSE: DG)

One of the best candy stocks out there is actually more of a candy retailer. Many people buy candy in bulk from gigantic retailers like Walmart and Target. The problem is that Walmart and Target have thousands of different products. Due to this, increased sales of candy probably aren’t going to make that big of an impact on their bottom line or stock price.

On the other hand, Dollar General is a much smaller retailer that many people still visit to buy cheap Halloween candy.

Dollar General is one of the few retailers that has been able to thrive despite the rise of eCommerce. Its sales have risen every year for the past five years, even during the pandemic. In 2021, Dollar General posted $33 billion in revenue and $2.66 billion in net income. Also, as prices continue to rise, Dollar General will continue to serve as a cheap option for consumers to do their shopping.

In the U.S., there are currently 17,683 Dollar General stores across 48 states. A quick calculation says that this is approximately 368 stores per state. This means that Dollar General is a readily available option for anyone looking to buy some cheap candy. It also makes it a good choice as a candy stock.

Dollar General stock is up about 5% so far in 2021 and is up over 200% over the past five years.

If you’re looking for some larger stocks, check out these big consumer staple stocks.

2. Hershey (NYSE: HSY)

As one of the most famous candy brands in the world, Hershey needs little introduction. Just like most massive corporations, Hershey owns tons of different brands. In fact, there are probably a lot of candies that you didn’t know were owned by Hershey. For example, Hershey’s owns:

1. Jolly Ranchers
2. Ice Breakers
3. KitKat
4. Reese’s
5. Twizzlers
6. Almond Joys
7. BarkThins
8. Mounds
9. Payday
10. Milk Duds

Of course, it obviously owns all the Hershey’s brand chocolate as well. With so many brands under one roof, Hershey has plenty of options to profit off increased candy sales. Its portfolio also has a good blend of chocolate and sugary candy.

Hershey’s 2020 sales were largely unaffected by the pandemic. In 2020, Hershey posted $8.15 billion in revenue and $1.28 in net income. Over the past five years, Hershey’s revenue has stayed fairly consistent with stable growth.

Another thing to consider with Hershey is that it owns the amusement park, Hershey Park. Hershey Park runs a fright night-style event called Hersheypark In The Dark. This event runs from mid-October till the end of October. If there is a surge of people buying Halloween candy, there is also probably a surge of people buying tickets to Halloween-themed events like this. This is another way that Hershey could profit off increased enthusiasm for Halloween.

With all of that said, Hershey might fall into the same category as Target and Walmart. Since it is such a large company, increased sales of Halloween candy might not have the biggest impact on its bottom line (and stock price).

Instead, let’s look at one last option for a candy stock. The stock below gives even better access to investing in the candy industry. It’s smaller and has more growth potential.