Shares of Hasbro (HAS) have been strong performers lately, with the stock up 5.8% over the past month. The stock hit a new 52-week high of $80.42 in the previous session. Hasbro has gained 43.7% since the start of the year compared to the 10.1% gain for the Zacks Consumer Discretionary sector and the 26.8% return for the Zacks Toys - Games - Hobbies industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 23, 2025, Hasbro reported EPS of $1.3 versus consensus estimate of $0.78 while it beat the consensus revenue estimate by 10.43%.
For the current fiscal year, Hasbro is expected to post earnings of $4.79 per share on $4.37 in revenues. This represents a 19.45% change in EPS on a 5.67% change in revenues. For the next fiscal year, the company is expected to earn $5.14 per share on $4.58 in revenues. This represents a year-over-year change of 7.4% and 4.91%, respectively.
Valuation Metrics
Hasbro may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Hasbro has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 16.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.3X. On a trailing cash flow basis, the stock currently trades at 14.5X versus its peer group's average of 7.7X. Additionally, the stock has a PEG ratio of 1.06. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Hasbro currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Hasbro passes the test. Thus, it seems as though Hasbro shares could still be poised for more gains ahead.
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Hasbro, Inc. (HAS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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