These 2 American Classics Just Saw Their Stocks Soar

On Thursday, the broader stock market continued its bull run for 2023, wiping out more of its losses from 2022. Even though the Dow Jones Industrial Average (^DJI 0.35%) once again missed out on the market rally, the S&P 500 (^GSPC 0.78%) enjoyed a solid gain, and the Nasdaq Composite (^IXIC 1.09%) jumped more than 3% to lead the way higher on Wall Street.

Data source: Yahoo! Finance.

A lot of high-growth stocks were among the big winners on Thursday, but that doesn't mean that some well-known consumer-facing companies weren't able to join in the rally. Indeed, iconic American classics Harley-Davidson (HOG 1.13%) and Hershey (HSY 0.69%) posted significant gains on the day, and the prospects for their respective businesses are looking favorable. Here are some of the details about the news that sent these stocks higher.

Revving up

Shares of Harley-Davidson finished higher by 11%. The motorcycle manufacturer reported its fourth-quarter financial results, and investors were pleased with what they saw from the American company.

The numbers from Harley-Davidson were exceptionally strong. Fourth-quarter revenue came in at $1.14 billion, up 12% year over year and accelerating from the 8% pace of growth for the full 2022 year compared to 2021. Net income soared, and earnings of $0.28 per share were double what Harley posted in the year-earlier period.

Harley-Davidson's fundamentals were also encouraging. Motorcycle shipments were up 18% for the quarter to 34,000, and gross margin soared by nearly seven percentage points to 26.5%, reflecting more favorable pricing and greater efficiency following a period of suspended production earlier in 2022. Although retail motorcycle sales were flat, that was still an improvement during a year in which worldwide retail unit sales dropped 8%.

For 2023, Harley-Davidson expects revenue from its motorcycle division to rise 4% to 7%. Even though its recently spun-off LiveWire electric motorcycle unit will likely keep losing money in the short run, investors seem pleased with the progress the company has made and are optimistic about efforts to take advantage of new consumer trends globally.

Looking tasty

Elsewhere, shares of Hershey finished 4% higher. The chocolate maker kept doing well, and investors looked forward to what the coming year will bring.

Hershey's fourth-quarter financial results included a 14% rise in sales to $2.65 billion. Net income came in at $396 million, and adjusted earnings of $2.02 per share were up almost 20% year over year. That closed a full year in 2022 in which Hershey's revenue climbed 16% from 2021 and adjusted earnings of $8.52 per share climbed 18.5%.

Investors were also pleased at how optimistic Hershey is about 2023. Guidance for the coming year included sales growth projections of 6% to 8% above 2022 levels, with consumer demand staying steady in the face of rising production capacity and greater levels of advertising. Hershey is spending more to invest in technology and brand awareness, but it expects expansion in gross margin and higher sales to offset those negative influences. As a result, the chocolate maker expects adjusted earnings to rise between 9% and 11% in 2023.

Many risk-averse investors have turned to Hershey as a generator of passive income, but the stock has been a monster, avoiding the bear market in 2022 and nearly doubling since mid-2020. The combination of strong returns and healthy dividends is hard to beat, and that's why shareholders are happier than ever right now.