Hasbro (HAS) closed at $67.81 in the latest trading session, marking a -2.43% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 1.13% for the day. On the other hand, the Dow registered a loss of 1.79%, and the technology-centric Nasdaq decreased by 1.3%.
Coming into today, shares of the toy maker had gained 4.56% in the past month. In that same time, the Consumer Discretionary sector gained 3.54%, while the S&P 500 gained 3.55%.
Analysts and investors alike will be keeping a close eye on the performance of Hasbro in its upcoming earnings disclosure. On that day, Hasbro is projected to report earnings of $0.77 per share, which would represent a year-over-year decline of 36.89%. Our most recent consensus estimate is calling for quarterly revenue of $872.3 million, down 12.36% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.22 per share and revenue of $4.19 billion, which would represent changes of +5.24% and +1.41%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Hasbro. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 1.13% rise in the Zacks Consensus EPS estimate. Currently, Hasbro is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Hasbro currently has a Forward P/E ratio of 16.45. For comparison, its industry has an average Forward P/E of 11.9, which means Hasbro is trading at a premium to the group.
Investors should also note that HAS has a PEG ratio of 1.92 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Toys - Games - Hobbies industry was having an average PEG ratio of 1.95.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 12, which puts it in the top 5% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Hasbro, Inc. (HAS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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