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JAKKS Pacific (JAKK) Stock Surges 111% in a Year: Here's How
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JAKKS Pacific, Inc. (JAKK - Free Report) is notably benefiting from product offerings expansion by strategizing business operations, accompanied by an increased focus on accretive partnerships.
Shares of this designer and marketer of a broad range of toys and consumer products have surged 111% in the past year, outperforming the Zacks Toys - Games - Hobbies industry’s 21.8% growth.
This Zacks Rank #1 (Strong Buy) company’s earnings estimates for 2023 have moved north to $5.28 per share from earnings of $5.17 per share over the past 30 days. JAKKS Pacific also delivered a trailing four-quarter earnings surprise of 61.8%, on average.
Image Source: Zacks Investment Research
Furthermore, the growth prospect is solidified with a VGM Score of A, backed by a Value Score of A, Growth Score of A and Momentum Score of A. The positive trend signifies bullish analysts’ sentiments, robust fundamentals and the continuation of an outperformance in the near term.
What Makes the Stock Attractive?
Expansion of Product Portfolio: JAKKS Pacific has emerged as a diversified consumer products company buoyed by a string of acquisitions over the past several years. It focuses on expanding its reach to include prominent accounts such as Macy's and Amazon in the United States and Sainsbury's in the U.K. The company plans for further growth in its retail section beyond the third quarter, with Wave 2 movie products and line extensions already in place. It also intends to initiate a full-360 paid media campaign, including digital, social, PR and trade support for new products.
For 2024, JAKK announced a new agreement with SEGA in support of the Sonic the Hedgehog 3 Paramount Pictures feature film, scheduled for release on Dec 20, 2024. The company has planned to introduce an innovative range of products for Sonic fans, including figures, plush items, play sets, costumes and more. JAKK also expects to unveil an extensive and diverse toy line dedicated to The Simpsons, a popular series in its 35th season, which caters to fans of all ages.
Digital Innovation: JAKKS Pacific realizes the importance of online retailing and has shifted its focus to aggressively boosting online sales. Over the past few quarters, JAKKS Pacific has been committed to creating digital experiences for online shoppers, such as videos, 360-degree product images and enhanced web pages. It continues to modify its sales and logistics capabilities to capitalize on this continued shift to online. The company is optimistic about its robust customer demand and has been continuously making timely brand developments and product innovations to drive margins.
Focus on Strategic Partnerships: JAKKS Pacific has entered into multiple licensing agreements across varied product lines since 2017. During the third quarter of 2023, JAKK announced a multiyear worldwide partnership with Authentic Brands Group, a powerhouse in the industry. The collaboration expands the company’s product offerings with iconic names like Roxy, Quicksilver, Forever21, Sports Illustrated, Prince and more. Designs are underway for a fall 2024 rollout, featuring escape boards with new designs for Element and Quicksilver, available at specialty and mass retailers in-store and online.
The company’s strategic expansion into new categories and acquisition of licenses to enhance its products have led to thriving, evergreen businesses. To maximize this success, JAKK is focusing on expanding its distribution channels.
It has a trailing four-quarter earnings surprise of 28.3%, on average. The stock has surged 158.9% in the past year. The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) suggests an increase of of 57.7% and 187.9%, respectively, from the year-ago period’s levels.
Live Nation Entertainment, Inc. (LYV - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 37.5%, on average. The stock has gained 29.7% in the past year.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates a 29.5% and 132.8% rise, respectively, from the year-ago period’s levels.
Grand Canyon Education, Inc. (LOPE - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 9.9%, on average. The stock has gained 34.4% in the past year.
The Zacks Consensus Estimate for LOPE’s 2023 sales and EPS suggests an improvement of 7.1% and 17.1%, respectively, from the year-ago period’s levels.
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JAKKS Pacific (JAKK) Stock Surges 111% in a Year: Here's How
JAKKS Pacific, Inc. (JAKK - Free Report) is notably benefiting from product offerings expansion by strategizing business operations, accompanied by an increased focus on accretive partnerships.
Shares of this designer and marketer of a broad range of toys and consumer products have surged 111% in the past year, outperforming the Zacks Toys - Games - Hobbies industry’s 21.8% growth.
This Zacks Rank #1 (Strong Buy) company’s earnings estimates for 2023 have moved north to $5.28 per share from earnings of $5.17 per share over the past 30 days. JAKKS Pacific also delivered a trailing four-quarter earnings surprise of 61.8%, on average.
Image Source: Zacks Investment Research
Furthermore, the growth prospect is solidified with a VGM Score of A, backed by a Value Score of A, Growth Score of A and Momentum Score of A. The positive trend signifies bullish analysts’ sentiments, robust fundamentals and the continuation of an outperformance in the near term.
What Makes the Stock Attractive?
Expansion of Product Portfolio: JAKKS Pacific has emerged as a diversified consumer products company buoyed by a string of acquisitions over the past several years. It focuses on expanding its reach to include prominent accounts such as Macy's and Amazon in the United States and Sainsbury's in the U.K. The company plans for further growth in its retail section beyond the third quarter, with Wave 2 movie products and line extensions already in place. It also intends to initiate a full-360 paid media campaign, including digital, social, PR and trade support for new products.
For 2024, JAKK announced a new agreement with SEGA in support of the Sonic the Hedgehog 3 Paramount Pictures feature film, scheduled for release on Dec 20, 2024. The company has planned to introduce an innovative range of products for Sonic fans, including figures, plush items, play sets, costumes and more. JAKK also expects to unveil an extensive and diverse toy line dedicated to The Simpsons, a popular series in its 35th season, which caters to fans of all ages.
Digital Innovation: JAKKS Pacific realizes the importance of online retailing and has shifted its focus to aggressively boosting online sales. Over the past few quarters, JAKKS Pacific has been committed to creating digital experiences for online shoppers, such as videos, 360-degree product images and enhanced web pages. It continues to modify its sales and logistics capabilities to capitalize on this continued shift to online. The company is optimistic about its robust customer demand and has been continuously making timely brand developments and product innovations to drive margins.
Focus on Strategic Partnerships: JAKKS Pacific has entered into multiple licensing agreements across varied product lines since 2017. During the third quarter of 2023, JAKK announced a multiyear worldwide partnership with Authentic Brands Group, a powerhouse in the industry. The collaboration expands the company’s product offerings with iconic names like Roxy, Quicksilver, Forever21, Sports Illustrated, Prince and more. Designs are underway for a fall 2024 rollout, featuring escape boards with new designs for Element and Quicksilver, available at specialty and mass retailers in-store and online.
The company’s strategic expansion into new categories and acquisition of licenses to enhance its products have led to thriving, evergreen businesses. To maximize this success, JAKK is focusing on expanding its distribution channels.
Other Key Picks
Here are some other top-ranked stocks from the Zacks Consumer Discretionary sector.
Royal Caribbean Cruises Ltd. (RCL - Free Report) sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
It has a trailing four-quarter earnings surprise of 28.3%, on average. The stock has surged 158.9% in the past year. The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) suggests an increase of of 57.7% and 187.9%, respectively, from the year-ago period’s levels.
Live Nation Entertainment, Inc. (LYV - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 37.5%, on average. The stock has gained 29.7% in the past year.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS indicates a 29.5% and 132.8% rise, respectively, from the year-ago period’s levels.
Grand Canyon Education, Inc. (LOPE - Free Report) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 9.9%, on average. The stock has gained 34.4% in the past year.
The Zacks Consensus Estimate for LOPE’s 2023 sales and EPS suggests an improvement of 7.1% and 17.1%, respectively, from the year-ago period’s levels.