Back to top

Bear of the Day

With product launches, possible acquisitions, strategic partnerships, resolution of litigation and a strong financial condition, JAKKS Pacific, Inc. (JAKK) is well poised for long-term growth. However, a tough retail environment leading to lower domestic product sales and a decline in product orders before the crucial holiday season compel the company to cut its fiscal guidance.

Additionally, decelerating margins, a top- and bottom-line miss in the third quarter of 2012, unfavorable product mix and wage inflation in China add further worry. The uncertainty around the upcoming presidential election and the fiscal cliff in the U.S., along with global economic turmoil due to the Eurozone crisis will likely keep consumers preoccupied and less inclined toward entertainment activities.

Hence, we maintain our Underperform recommendation on the stock. Our six-month target price of $12.00 equates to about 24.5x our estimate for 2012. The target price implies an expected negative total return of 5.6% over that period.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%