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Will Toymaker Stocks Benefit from Star Wars Rogue One?
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Media giant Walt Disney Co.’s (DIS - Free Report) latest Star Wars movie Rogue One: A Star Wars Story is set to hit theaters on Dec 16.
As per reports, the movie is poised for a terrific worldwide box office opening with expectations of raking in $280–$350 million in its first five days.
Made with an estimated budget of $200 million, this is the first spin-off film to debut under Disney's new strategy of releasing one “Star Wars” film every year through 2020. Moreover, given the fact that the release will pretty much rely on brand new characters makes its anticipated gross even more exciting.
Toymaker Stocks to Benefit?
Notably, the Star Wars brand was built on its toys and merchandise. In fact, toys are arguably the most profitable elements of the Star Wars universe. Thus, the release of the movie is a massive opportunity for toymakers like Hasbro Inc. (HAS - Free Report) , Mattel, Inc. (MAT - Free Report) and JAKKS Pacific, Inc. (JAKK - Free Report) that can benefit greatly from their licensing deals of Star Wars toys.
We note that the release of Star Wars: The Force Awakens in Dec 2015 was a boon for toymakers. Star Wars: The Force Awakens' products made their global retail launch in Sep 2015. Particularly, Hasbro’s Star Wars: The Force Awakens line has been well received by retailers and consumers alike. Hasbro's Black Series action figures and multiple lightsabers are loved by consumers.
In fact, Hasbro along with other toymakers aim to cash in on the popularity of the new movie with a slew of Star Wars toys and collectibles ranging from 3.75” figures, to vehicles, to Nerf guns, to collectible Black Series figures, Funko Pop Vinyls, BIG-FIGS and many more.
Our Take
The toy industry, of late, has been witnessing a significant change with children being more attracted to alternative modes of entertainment including video games, MP3 players, tablets, smartphones and other electronic devices. With children opting for electronic versions of games on smartphones and tablets, toymakers revenues and profits’ have been hurt by lower demand over the past few quarters.
Nonetheless, the Zacks categorized Toys-Games-Hobbies industry had gained nearly 9% year to date.
Moreover, we note that toys related to popular movie franchisees have usually been successful. Thus, the new Star Wars movie could be a huge game-changer for these toymakers. These have the potential of boosting both global and domestic toy sales.
You are welcome to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buy" stocks free of charge. There is no better place to start your own stock search. Plus you can access the full list of must-avoid Zacks Rank #5 "Strong Sells" and other private research. See the stocks free >>
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Will Toymaker Stocks Benefit from Star Wars Rogue One?
Media giant Walt Disney Co.’s (DIS - Free Report) latest Star Wars movie Rogue One: A Star Wars Story is set to hit theaters on Dec 16.
As per reports, the movie is poised for a terrific worldwide box office opening with expectations of raking in $280–$350 million in its first five days.
Made with an estimated budget of $200 million, this is the first spin-off film to debut under Disney's new strategy of releasing one “Star Wars” film every year through 2020. Moreover, given the fact that the release will pretty much rely on brand new characters makes its anticipated gross even more exciting.
Toymaker Stocks to Benefit?
Notably, the Star Wars brand was built on its toys and merchandise. In fact, toys are arguably the most profitable elements of the Star Wars universe. Thus, the release of the movie is a massive opportunity for toymakers like Hasbro Inc. (HAS - Free Report) , Mattel, Inc. (MAT - Free Report) and JAKKS Pacific, Inc. (JAKK - Free Report) that can benefit greatly from their licensing deals of Star Wars toys.
We note that the release of Star Wars: The Force Awakens in Dec 2015 was a boon for toymakers. Star Wars: The Force Awakens' products made their global retail launch in Sep 2015. Particularly, Hasbro’s Star Wars: The Force Awakens line has been well received by retailers and consumers alike. Hasbro's Black Series action figures and multiple lightsabers are loved by consumers.
In fact, Hasbro along with other toymakers aim to cash in on the popularity of the new movie with a slew of Star Wars toys and collectibles ranging from 3.75” figures, to vehicles, to Nerf guns, to collectible Black Series figures, Funko Pop Vinyls, BIG-FIGS and many more.
Our Take
The toy industry, of late, has been witnessing a significant change with children being more attracted to alternative modes of entertainment including video games, MP3 players, tablets, smartphones and other electronic devices. With children opting for electronic versions of games on smartphones and tablets, toymakers revenues and profits’ have been hurt by lower demand over the past few quarters.
Nonetheless, the Zacks categorized Toys-Games-Hobbies industry had gained nearly 9% year to date.
Toys - Games - Hobbies Industry 5YR % Return
Toys - Games - Hobbies Industry 5YR % Return
Moreover, we note that toys related to popular movie franchisees have usually been successful. Thus, the new Star Wars movie could be a huge game-changer for these toymakers. These have the potential of boosting both global and domestic toy sales.
Though JAKKS Pacific holds a Zacks Rank #5 (Strong Sell), both Hasbro and Mattel carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Where Do Zacks' Investment Ideas Come From?
You are welcome to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buy" stocks free of charge. There is no better place to start your own stock search. Plus you can access the full list of must-avoid Zacks Rank #5 "Strong Sells" and other private research. See the stocks free >>