Hasbro (HAS) ended the recent trading session at $77.66, demonstrating a -1.25% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow saw a downswing of 0.48%, while the tech-heavy Nasdaq appreciated by 0.03%.
Shares of the toy maker witnessed a gain of 0.5% over the previous month, trailing the performance of the Consumer Discretionary sector with its gain of 5.83%, and the S&P 500's gain of 2.09%.
Market participants will be closely following the financial results of Hasbro in its upcoming release. On that day, Hasbro is projected to report earnings of $1.64 per share, which would represent a year-over-year decline of 5.2%. Meanwhile, our latest consensus estimate is calling for revenue of $1.33 billion, up 3.85% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.87 per share and a revenue of $4.41 billion, signifying shifts of +21.45% and +6.64%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Hasbro. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.79% higher. Right now, Hasbro possesses a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Hasbro is at present trading with a Forward P/E ratio of 16.13. This signifies a premium in comparison to the average Forward P/E of 11.47 for its industry.
Investors should also note that HAS has a PEG ratio of 1.02 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. HAS's industry had an average PEG ratio of 1.64 as of yesterday's close.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 33, finds itself in the top 14% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Hasbro, Inc. (HAS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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