Hasbro (HAS) closed the latest trading day at $65.18, indicating a -0.38% change from the previous session's end. This change was narrower than the S&P 500's 0.53% loss on the day. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 0.83%.
The toy maker's stock has climbed by 6.51% in the past month, falling short of the Consumer Discretionary sector's gain of 6.96% and outpacing the S&P 500's gain of 5.17%.
The investment community will be closely monitoring the performance of Hasbro in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.77, reflecting a 36.89% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $872.3 million, down 12.36% from the prior-year quarter.
HAS's full-year Zacks Consensus Estimates are calling for earnings of $4.22 per share and revenue of $4.19 billion. These results would represent year-over-year changes of +5.24% and +1.41%, respectively.
It is also important to note the recent changes to analyst estimates for Hasbro. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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, 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 moved 1.44% higher. Hasbro is currently a Zacks Rank #3 (Hold).
With respect to valuation, Hasbro is currently being traded at a Forward P/E ratio of 15.49. This indicates a premium in contrast to its industry's Forward P/E of 11.51.
Also, we should mention that HAS has a PEG ratio of 1.8. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Toys - Games - Hobbies industry stood at 1.86 at the close of the market yesterday.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 13, placing it within the top 6% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
