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Hasbro (HAS) Declines More Than Market: Some Information for Investors

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Hasbro (HAS - Free Report) ended the recent trading session at $74.69, demonstrating a -1.72% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.13%. Elsewhere, the Dow saw a downswing of 0.27%, while the tech-heavy Nasdaq depreciated by 0.07%.

The toy maker's stock has dropped by 6.76% in the past month, falling short of the Consumer Discretionary sector's gain of 1.44% and the S&P 500's gain of 2.71%.

The investment community will be paying close attention to the earnings performance of Hasbro in its upcoming release. The company's upcoming EPS is projected at $1.64, signifying a 5.20% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.33 billion, up 3.85% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $4.87 per share and a revenue of $4.41 billion, demonstrating changes of +21.45% and +6.64%, respectively, from the preceding year.

Any recent changes to analyst estimates for Hasbro should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Hasbro is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Hasbro is presently being traded at a Forward P/E ratio of 15.59. Its industry sports an average Forward P/E of 10.8, so one might conclude that Hasbro is trading at a premium comparatively.

Meanwhile, HAS's PEG ratio is currently 0.98. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Toys - Games - Hobbies industry had an average PEG ratio of 1.55 as trading concluded yesterday.

The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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