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Mattel (MAT) Boosts Digital Collector Offerings With NFT Series

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Mattel, Inc. (MAT - Free Report) is creating a new method to converge innovation and artistry in the toy space. To this end, the company announced the launch of Non-Fungible Token (“NFT”) series comprising Hot Wheels cars — the Twin Mill, Bone Shaker and Deora II.

NFT is a type of digital asset designed to track ownership of a virtual item (such as online pictures and videos) using blockchain technology. By entering into this zone, Mattel is likely to expand across this emerging art space and advance the digital collector offering.

Richard Dickson, president and chief operating officer, Mattel, stated, “Connecting to culture is core to Mattel’s DNA, and as we continually look to innovate, evolving physical product to digital art through NFTs was an obvious next step for Mattel Creations.”

Notably, the company intends to auction three unique NFTs through the Mattel Creations platform, starting from Jun 22 to Jun 29. Moreover, the initiative will enable customers to transact with cryptocurrency exclusively with Ethereum.

Given the expansive collaborations of Mattel Creations with artists, designers and pop culture influencers, the company intends to remix Mattel’s iconic toys into entirely new and inspired designs.

Nonetheless, the company plans to launch NFT creations for its other toy brands through its direct-to-consumer platform, going forward.

Price Performance

Zacks Investment ResearchImage Source: Zacks Investment Research

Shares of the company have gained 10.8% so far this year, against the industry’s 3.1% decline. The outperformance was primarily attributed to product innovation, marketing partnerships, promotional initiatives and digital efforts. Moreover, the company’s initiative to simplify its organization structure as well as optimize processes and supply chain to generate savings across operations bodes well. Nonetheless, earning estimates for 2021 have increased in the past 60 days, which reflects analysts’ optimism on the company’s growth prospect.

Zacks Rank & Other Key Picks

Mattel currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other top-ranked stocks in the Zacks Consumer Discretionary sector include OneWater Marine Inc. (ONEW - Free Report) , Red Rock Resorts, Inc. (RRR - Free Report) and Boyd Gaming Corporation (BYD - Free Report) , each sporting a Zacks Rank #1.

OneWater Marine has a trailing four-quarter earnings surprise of 224.1%, on average.

2021 earnings for Red Rock Resorts are expected to surge 102.8%.

Boyd Gaming has a three-five-year earnings per share growth rate of 19.8%.

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