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HAS Stock Up 29% in a Month: Time to Lock in Gains or Stay Invested?
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Key Takeaways
Hasbro's Q3 2026 revenues rose 15% to $1.6 billion, while adjusted EPS surged 73% to $2.90.
Wizards of the Coast revenues jumped 31% to $747 million, led by 34% growth in Magic: The Gathering.
HAS raised its 2026 revenue outlook to 7-9% and doubled its annual share repurchase target to $400 million.
Hasbro, Inc. (HAS - Free Report) has staged a strong rally, with its shares gaining 28.6% over the past month. The stock has outperformed the Zacks Toys-Games-Hobbies industry, which advanced 18.5% over the same period. Meanwhile, JAKKS Pacific (JAKK - Free Report) climbed 31.2%, while Mattel (MAT - Free Report) declined 4.6%. The S&P 500 fell 4.2%, highlighting Hasbro’s relative strength.
The rally reflects growing investor confidence in Hasbro’s earnings growth, improving profitability and expanding Magic: The Gathering business. However, after such a sharp advance, investors may wonder whether to book profits or remain invested for further upside.
Price Performance
Image Source: Zacks Investment Research
Strong Q3 Performance Strengthens the Investment Case
Hasbro delivered a robust third-quarter 2026 performance, with revenues increasing 15% year over year to $1.6 billion. Adjusted earnings per share surged 73% to $2.90, comfortably beating the Zacks Consensus Estimate. Adjusted operating profit rose 52% to $541 million, while the adjusted operating margin expanded 830 basis points to 33.9%.
Wizards of the Coast continued to be the primary growth engine. Segment revenues advanced 31% to $747 million, supported by a 34% increase in Magic: The Gathering revenues to $616 million. The Hobbit, Reality Fracture and strength in backlist products contributed to the performance. Management highlighted growing player engagement, expanding retail distribution and strong demand across product releases.
Consumer Products also demonstrated improvement, with revenues rising 4% to $828 million. Adjusted operating profit doubled to $178 million, aided by supply-chain productivity, lower distribution costs, favorable product mix and approximately $48 million in tariff refunds. The company’s toy and game business marked its fourth consecutive quarter of revenue growth. Hasbro’s Entertainment segment generated 9% revenue growth, further supporting its diversified portfolio.
Hasbro Raises Full-Year Outlook
Management raised its fiscal 2026 outlook following the strong quarterly performance. Hasbro now expects consolidated revenues to increase 7-9% year over year on a constant-currency basis. Adjusted EBITDA is projected between $1.575 billion and $1.625 billion.
Wizards of the Coast revenues are expected to grow 16-18%, with operating margins of approximately 44-45%. Consumer Products revenues are anticipated to increase 1-3%, while adjusted operating margins are projected at 8-10%, including tariff refund benefits.
The company also increased the annual share repurchase target from $200 million to $400 million, reflecting confidence in its cash-generation capabilities. Through the first nine months of 2026, Hasbro generated $907 million in operating cash flow, up 85% year over year, and returned $445 million to its shareholders through dividends and share repurchases.
Growth Prospects Remain Encouraging
Hasbro’s outlook beyond 2026 appears promising. Management expects Magic: The Gathering to continue growing in 2027, supported by a deeper release pipeline, broader distribution and an expanding player base. All six major Magic releases planned for 2027 are expected to feature full product suites, potentially supporting higher sales.
The company’s digital gaming pipeline also offers growth opportunities. Exodus is scheduled to launch on April 7, 2027, while Warlock is expected to follow in 2027. Hasbro is also preparing for new licensed products, including Harry Potter and The Legend of Zelda, alongside a strong entertainment slate.
Management expects digital gaming development costs to decline 20-25% by 2028, potentially providing additional flexibility for reinvestment, debt reduction and shareholder returns.
HAS Valuation: How Does It Stack Up Against Peers?
Hasbro is trading at a forward 12-month P/E of 17.61X, compared with the industry average of 13.36X. Among its peers, Mattel and JAKKS Pacific trade at 10.61X and 19.22X, respectively.
P/E (F12M)
Image Source: Zacks Investment Research
HAS Earnings Estimates: Analysts Turn More Optimistic
Analysts' earnings expectations for Hasbro have improved over the past 30 days. The Zacks Consensus Estimate for 2026 EPS has increased from $6.16 to $6.85, while the same for 2027 has risen from $6.55 to $6.93, reflecting growing optimism about the company's earnings prospects.
Image Source: Zacks Investment Research
Should Investors Stay Bullish on HAS After Its Strong Rally?
Hasbro’s solid operating performance, improved earnings outlook and continued strength in Magic: The Gathering support its growth prospects. The company’s focus on cost efficiency, expanding licensing opportunities and shareholder returns further strengthens its investment case.
Rising earnings estimates and a Zacks Rank #1 (Strong Buy) indicate favorable analyst sentiment. However, premium valuation and potential margin pressures warrant caution. Investors may consider staying invested, while monitoring execution and future earnings momentum for sustained upside.
View the Zacks #1 Rank List
Image: Bigstock
HAS Stock Up 29% in a Month: Time to Lock in Gains or Stay Invested?
Key Takeaways
Hasbro, Inc. (HAS - Free Report) has staged a strong rally, with its shares gaining 28.6% over the past month. The stock has outperformed the Zacks Toys-Games-Hobbies industry, which advanced 18.5% over the same period. Meanwhile, JAKKS Pacific (JAKK - Free Report) climbed 31.2%, while Mattel (MAT - Free Report) declined 4.6%. The S&P 500 fell 4.2%, highlighting Hasbro’s relative strength.
The rally reflects growing investor confidence in Hasbro’s earnings growth, improving profitability and expanding Magic: The Gathering business. However, after such a sharp advance, investors may wonder whether to book profits or remain invested for further upside.
Price Performance
Image Source: Zacks Investment Research
Strong Q3 Performance Strengthens the Investment Case
Hasbro delivered a robust third-quarter 2026 performance, with revenues increasing 15% year over year to $1.6 billion. Adjusted earnings per share surged 73% to $2.90, comfortably beating the Zacks Consensus Estimate. Adjusted operating profit rose 52% to $541 million, while the adjusted operating margin expanded 830 basis points to 33.9%.
Wizards of the Coast continued to be the primary growth engine. Segment revenues advanced 31% to $747 million, supported by a 34% increase in Magic: The Gathering revenues to $616 million. The Hobbit, Reality Fracture and strength in backlist products contributed to the performance. Management highlighted growing player engagement, expanding retail distribution and strong demand across product releases.
Consumer Products also demonstrated improvement, with revenues rising 4% to $828 million. Adjusted operating profit doubled to $178 million, aided by supply-chain productivity, lower distribution costs, favorable product mix and approximately $48 million in tariff refunds. The company’s toy and game business marked its fourth consecutive quarter of revenue growth. Hasbro’s Entertainment segment generated 9% revenue growth, further supporting its diversified portfolio.
Hasbro Raises Full-Year Outlook
Management raised its fiscal 2026 outlook following the strong quarterly performance. Hasbro now expects consolidated revenues to increase 7-9% year over year on a constant-currency basis. Adjusted EBITDA is projected between $1.575 billion and $1.625 billion.
Wizards of the Coast revenues are expected to grow 16-18%, with operating margins of approximately 44-45%. Consumer Products revenues are anticipated to increase 1-3%, while adjusted operating margins are projected at 8-10%, including tariff refund benefits.
The company also increased the annual share repurchase target from $200 million to $400 million, reflecting confidence in its cash-generation capabilities. Through the first nine months of 2026, Hasbro generated $907 million in operating cash flow, up 85% year over year, and returned $445 million to its shareholders through dividends and share repurchases.
Growth Prospects Remain Encouraging
Hasbro’s outlook beyond 2026 appears promising. Management expects Magic: The Gathering to continue growing in 2027, supported by a deeper release pipeline, broader distribution and an expanding player base. All six major Magic releases planned for 2027 are expected to feature full product suites, potentially supporting higher sales.
The company’s digital gaming pipeline also offers growth opportunities. Exodus is scheduled to launch on April 7, 2027, while Warlock is expected to follow in 2027. Hasbro is also preparing for new licensed products, including Harry Potter and The Legend of Zelda, alongside a strong entertainment slate.
Management expects digital gaming development costs to decline 20-25% by 2028, potentially providing additional flexibility for reinvestment, debt reduction and shareholder returns.
HAS Valuation: How Does It Stack Up Against Peers?
Hasbro is trading at a forward 12-month P/E of 17.61X, compared with the industry average of 13.36X. Among its peers, Mattel and JAKKS Pacific trade at 10.61X and 19.22X, respectively.
P/E (F12M)
Image Source: Zacks Investment Research
HAS Earnings Estimates: Analysts Turn More Optimistic
Analysts' earnings expectations for Hasbro have improved over the past 30 days. The Zacks Consensus Estimate for 2026 EPS has increased from $6.16 to $6.85, while the same for 2027 has risen from $6.55 to $6.93, reflecting growing optimism about the company's earnings prospects.
Image Source: Zacks Investment Research
Should Investors Stay Bullish on HAS After Its Strong Rally?
Hasbro’s solid operating performance, improved earnings outlook and continued strength in Magic: The Gathering support its growth prospects. The company’s focus on cost efficiency, expanding licensing opportunities and shareholder returns further strengthens its investment case.
Rising earnings estimates and a Zacks Rank #1 (Strong Buy) indicate favorable analyst sentiment. However, premium valuation and potential margin pressures warrant caution. Investors may consider staying invested, while monitoring execution and future earnings momentum for sustained upside.
You can see the complete list of today’s Zacks #1 Rank stocks here.