Jim Cramer Says "Hasbro's Doing Well This Year" Because of Their Gaming Business

Hasbro, Inc. (NASDAQ:HAS) is one of the stocks that Jim Cramer put under a microscope. Cramer discussed the company in detail during the episode. He remarked:

“So long story short, Hasbro’s doing well this year because their gaming business is on fire, driven by the excellent performance from the Magic: The Gathering franchise… while the toy business isn’t doing as poorly as expected. As for the entertainment side of things, that’s too small to make much of a difference. It’s nice and profitable, though. But I want you to have one final thought here.

If you look at Hasbro’s performance by segment in full-year 2024 versus, say, the first six months of 2025, here’s what you’d see: the gaming business has grown rapidly while the toy business has shrank. And you know what? From my perspective, that makes Hasbro a much more attractive investment because their games are high margin, and the toys, well, what can I say? They’re very low margin, and that’s a real tough business.

… As this becomes more of a gaming play and less of a toy play, of course, the stock deserves to go higher. I keep thinking what would happen if they got rid of that toy business. Looking out in the future, I’m betting Hasbro can keep winning with a head of steam for Magic: The Gathering, powering the entire enterprise’s growth. Plus, the toy division, it could easily put up better performance in the second half. And of course, while licensing their brands to film and TV hasn’t been making them that much money, it represents a huge potential long-term growth opportunity…

Best of all, even after this huge run, Hasbro’s really not expensive, selling for roughly 16 times this year’s estimates and a little over 15 times next year’s numbers. Huh, that’s strange. Oh, it doesn’t hurt that Hasbro supports a 3.5% dividend yield. At these levels, if you’re worried about already missing the move here, uh-uh, yield says otherwise.

Bottom line: Hasbro’s stock has soared this year because Wall Street still doesn’t fully appreciate how much this company’s changed. We think of it as a toy maker, right? But its main business is now tabletop and digital games fueled by the strength of Magic: The Gathering. This is a much better business than selling toys, and it’s one that doesn’t have much exposure to the president’s tariffs either, assuming the Supreme Court doesn’t strike them down. Basically, this is a gaming stock that still trades like a toy maker, which is why I think it’s got much more room to run. Jeez, I like this story.”

Hasbro, Inc. (NASDAQ:HAS) designs and markets toys, games, collectibles, and licensed consumer products. Moreover, the company creates digital gaming experiences and entertainment content.

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Disclosure: None. This article is originally published at Insider Monkey.