Amid the continued AI craze in 2026, many have overlooked simple businesses that aren’t overly flashy, such as well-established companies like Hershey (HSY), and PepsiCo (PEP), both of which have nicely outperformed relative to the S&P 500 in 2026, as shown below.
Image Source: Zacks Investment Research
Hershey Enjoys Bullish Revisions
The Hershey Company, a current Zacks Rank #2 (Buy), is the largest chocolate manufacturer in North America and a global leader in chocolate and non-chocolate confectionery. The company has seen its earnings outlook for its current and next fiscal year jump higher over recent months, a huge positive concerning sustaining its recent momentum.
Image Source: Zacks Investment Research
Hershey has also been on a nice earnings streak, exceeding earnings and revenue estimates in three consecutive quarters, underpinning the recent momentum nicely.
Shares are also highly attractive from an income-focused standpoint, with the company overall a long-time favorite of those seeking consistent paydays. Shares currently yield a solid 2.7% annually, which compares to a current yield of 1.1% from the S&P 500.
Image Source: Zacks Investment Research
PepsiCo Keeps Paying
PepsiCo is a long-established company engaged in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products.
While revisions for its current and next fiscal year stand a hair below where they were a year ago, the bounce back and stability of revisions that have followed since last June eases concenrs nicely. The stock also popped on its latest set of better-than-expected results, with improved operational efficiencies leading to 15% year-over-year EPS growth.
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Keep in mind that PepsiCo holds the elite Dividend King title, showing an unparalleled commitment to its shareholders through 50+ consecutive years of increased dividend payouts. Shares currently yield a rock-solid 3.6% annually, with its dividend reliability illustrated below.
Image Source: Zacks Investment Research
Bottom Line
You don’t have to focus on the hottest tech trend to see great returns. Less-flashy companies like PepsiCo (PEP) and The Hershey Company (HSY) have established themselves fully by doing the ‘simple’ things exceptionally well. Of course, they’re likely not to impress investors given their less-flashy nature, but sometimes boring is better.
— Derek Lewis
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Source: Zacks
