In the latest close session, Hasbro (HAS) was down 1.76% at $79.75. This move lagged the S&P 500's daily loss of 0.69%. Meanwhile, the Dow experienced a drop of 0.55%, and the technology-dominated Nasdaq saw a decrease of 0.82%.
Prior to today's trading, shares of the toy maker had gained 5.57% lagged the Consumer Discretionary sector's gain of 6.08% and outpaced the S&P 500's gain of 3.79%.
The upcoming earnings release of Hasbro will be of great interest to investors. The company's upcoming EPS is projected at $1.64, signifying a 5.20% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.33 billion, reflecting a 3.85% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.87 per share and revenue of $4.41 billion. These totals would mark changes of +21.45% and +6.64%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Hasbro. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.79% upward. Hasbro currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Hasbro is holding a Forward P/E ratio of 16.65. This expresses a premium compared to the average Forward P/E of 11.34 of its industry.
Meanwhile, HAS's PEG ratio is currently 1.05. 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. By the end of yesterday's trading, the Toys - Games - Hobbies industry had an average PEG ratio of 1.64.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 12, positioning it in the top 5% 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.
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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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.
