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Why Hasbro (HAS) Outpaced the Stock Market Today

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In the latest trading session, Hasbro (HAS - Free Report) closed at $73.13, marking a +1.13% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.52%. On the other hand, the Dow registered a gain of 1%, and the technology-centric Nasdaq increased by 0.52%.

The toy maker's stock has climbed by 8.25% in the past month, exceeding the Consumer Discretionary sector's gain of 6.1% and the S&P 500's gain of 5.95%.

The investment community will be paying close attention to the earnings performance of Hasbro in its upcoming release. It is anticipated that the company will report an EPS of $0.77, marking a 36.89% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $872.3 million, showing a 12.36% drop compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.22 per share and revenue of $4.19 billion, indicating changes of +5.24% and +1.41%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Hasbro. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.92% rise in the Zacks Consensus EPS estimate. Hasbro presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Hasbro is at present trading with a Forward P/E ratio of 17.12. This represents a premium compared to its industry average Forward P/E of 12.01.

Investors should also note that HAS has a PEG ratio of 1.99 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Toys - Games - Hobbies industry held an average PEG ratio of 2.

The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 32, finds itself in the top 14% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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