Hasbro (HAS) ended the recent trading session at $83.47, demonstrating a -1.75% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 1.22%. At the same time, the Dow lost 0.98%, and the tech-heavy Nasdaq lost 1.35%.
Heading into today, shares of the toy maker had lost 12.58% over the past month, lagging the Consumer Discretionary sector's gain of 2.1% and the S&P 500's gain of 1.56%.
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 $1.18 per share, which would represent a year-over-year decline of 9.23%. In the meantime, our current consensus estimate forecasts the revenue to be $1.05 billion, indicating a 6.82% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.01 per share and a revenue of $4.98 billion, representing changes of +8.48% and +5.94%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Hasbro. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 last 30 days, the Zacks Consensus EPS estimate has moved 3.5% higher. Right now, Hasbro possesses a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Hasbro is currently exchanging hands at a Forward P/E ratio of 14.14. This signifies a premium in comparison to the average Forward P/E of 10.75 for its industry.
It's also important to note that HAS currently trades at 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 1.68 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 48, placing it within the top 20% of over 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.
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).