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Hasbro (HAS - Free Report) is a Zacks Rank #5 (Strong Sell) after recently missing earnings. The November retail sales report came in awfully weak so it is not surprising to see analysts taking down estimates of select consumer goods names ahead of the holiday. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Hasbro, Inc., operates as a play and entertainment company. Its Consumer Products segment engages in the sourcing, marketing, and sale of toy and game products. Its toys and games include action figures, arts and crafts and creative play products, fashion and other dolls, play sets, preschool toys, plush products, sports action blasters and accessories, vehicles and toy-related specialty products. The company's Wizards of the Coast and Digital Gaming segment engages in the promotion of its brands through the development of trading card, role-playing, and digital game experiences based on Hasbro and Wizards of the Coast games. Hasbro, Inc. was founded in 1923 and is headquartered in Pawtucket, Rhode Island.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of HAS, I two beats of the Zacks Consensus Estimate and two misses. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For HAS I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $4.75 to $4.66 over the last 60 days.
The next year has moved from $5.37 to $5.14. That move lower is probably the biggest deciding factor for this stock to be a Zacks Rank #5 (Strong Sell).
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a majority of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
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Bear Of The Day: Hasbro (HAS)
Hasbro (HAS - Free Report) is a Zacks Rank #5 (Strong Sell) after recently missing earnings. The November retail sales report came in awfully weak so it is not surprising to see analysts taking down estimates of select consumer goods names ahead of the holiday. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Hasbro, Inc., operates as a play and entertainment company. Its Consumer Products segment engages in the sourcing, marketing, and sale of toy and game products. Its toys and games include action figures, arts and crafts and creative play products, fashion and other dolls, play sets, preschool toys, plush products, sports action blasters and accessories, vehicles and toy-related specialty products. The company's Wizards of the Coast and Digital Gaming segment engages in the promotion of its brands through the development of trading card, role-playing, and digital game experiences based on Hasbro and Wizards of the Coast games. Hasbro, Inc. was founded in 1923 and is headquartered in Pawtucket, Rhode Island.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of HAS, I two beats of the Zacks Consensus Estimate and two misses. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For HAS I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $4.75 to $4.66 over the last 60 days.
The next year has moved from $5.37 to $5.14. That move lower is probably the biggest deciding factor for this stock to be a Zacks Rank #5 (Strong Sell).
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a majority of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).