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Hasbro (HAS) Exceeds Market Returns: Some Facts to Consider

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Hasbro (HAS - Free Report) closed the latest trading day at $57.15, indicating a +0.9% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.72%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.35%.

Shares of the toy maker witnessed a loss of 0.44% over the previous month, trailing the performance of the Consumer Discretionary sector with its gain of 2.95% and the S&P 500's gain of 1.02%.

The investment community will be closely monitoring the performance of Hasbro in its forthcoming earnings report. The company is scheduled to release its earnings on February 20, 2025. The company is predicted to post an EPS of $0.36, indicating a 5.26% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.03 billion, down 20.39% from the prior-year quarter.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Hasbro. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 3.16% fall in the Zacks Consensus EPS estimate. Hasbro is currently a Zacks Rank #3 (Hold).

In the context of valuation, Hasbro is at present trading with a Forward P/E ratio of 13.11. This represents a premium compared to its industry's average Forward P/E of 12.2.

Meanwhile, HAS's PEG ratio is currently 0.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Toys - Games - Hobbies industry held an average PEG ratio of 0.85.

The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 39, positioning it in the top 16% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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