In the latest trading session, Hasbro (HAS) closed at $82.29, marking a -2.34% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.62%. On the other hand, the Dow registered a loss of 1.87%, and the technology-centric Nasdaq decreased by 1.98%.
Heading into today, shares of the toy maker had lost 10.84% over the past month, lagging the Consumer Discretionary sector's loss of 0.56% and the S&P 500's loss of 0.03%.
Market participants will be closely following the financial results of Hasbro in its upcoming release. The company is predicted to post an EPS of $1.2, indicating a 7.69% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.05 billion, indicating a 7.54% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.96 per share and a revenue of $4.98 billion, indicating changes of +7.58% and +5.92%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Hasbro. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.73% higher. Hasbro is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Hasbro currently has a Forward P/E ratio of 14.15. This represents a premium compared to its industry average Forward P/E of 11.02.
One should further note that HAS currently holds a PEG ratio of 2.08. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Toys - Games - Hobbies industry currently had an average PEG ratio of 1.69 as of yesterday's close.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 51, placing it within the top 21% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Hasbro, Inc. (HAS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).