3 Reasons to Avoid HAS and 1 Stock to Buy Instead

Hasbro trades at $79.12 per share and has stayed right on track with the overall market, gaining 20.2% over the last six months. At the same time, the S&P 500 has returned 16.4%.

Is now the time to buy Hasbro, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it’s free for active Edge members.

Why Do We Think Hasbro Will Underperform?

We're sitting this one out for now. Here are three reasons why HAS doesn't excite us and a stock we'd rather own.

1. Revenue Spiraling Downwards

A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Hasbro struggled to consistently generate demand over the last five years as its sales dropped at a 3.4% annual rate. This was below our standards and is a sign of poor business quality.

2. Operating Losses Sound the Alarms

Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.

Hasbro’s operating margin has risen over the last 12 months, but it still averaged negative 9.2% over the last two years. This is due to its large expense base and inefficient cost structure.

3. New Investments Fail to Bear Fruit as ROIC Declines

ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity).

We like to invest in businesses with high returns, but the trend in a company’s ROIC is what often surprises the market and moves the stock price. Unfortunately, Hasbro’s ROIC has decreased significantly over the last few years. Paired with its already low returns, these declines suggest its profitable growth opportunities are few and far between.

Final Judgment

We cheer for all companies serving everyday consumers, but in the case of Hasbro, we’ll be cheering from the sidelines. That said, the stock currently trades at 15.6× forward P/E (or $79.12 per share). While this valuation is fair, the upside isn’t great compared to the potential downside. There are more exciting stocks to buy at the moment. We’d suggest looking at one of our top digital advertising picks.

Stocks We Like More Than Hasbro

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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