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

Zacks
02-13

The latest trading session saw Hasbro (HAS) ending at $59.72, denoting a -0.62% adjustment from its last day's close. This change lagged the S&P 500's 0.27% loss on the day. Elsewhere, the Dow saw a downswing of 0.51%, while the tech-heavy Nasdaq appreciated by 0.03%.

Prior to today's trading, shares of the toy maker had gained 6.13% over the past month. This has lagged the Consumer Discretionary sector's gain of 7.78% and outpaced the S&P 500's gain of 4.27% in that time.

The upcoming earnings release of Hasbro will be of great interest to investors. The company's earnings report is expected on February 20, 2025. The company's earnings per share (EPS) are projected to be $0.36, reflecting a 5.26% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.03 billion, down 20.39% from the year-ago period.

Investors should also take note of any recent adjustments to analyst estimates for Hasbro. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, the Zacks Consensus EPS estimate has shifted 3.19% downward. Right now, Hasbro possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Hasbro is currently trading at a Forward P/E ratio of 13.9. For comparison, its industry has an average Forward P/E of 13.39, which means Hasbro is trading at a premium to the group.

Also, we should mention that HAS has a PEG ratio of 0.52. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Toys - Games - Hobbies industry held an average PEG ratio of 2.36.

The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 14, which puts it in the top 6% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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