Core Viewpoint - Hasbro's stock performance has been under pressure recently, with a notable decline over the past month, while upcoming earnings are anticipated to show a slight decline in EPS but growth in revenue [1][2]. Company Performance - Hasbro's stock increased by 1.38% to $75.59, outperforming the S&P 500's gain of 0.59% on the same day [1]. - Over the past month, Hasbro's stock has dropped by 8.63%, contrasting with the Consumer Discretionary sector's loss of 1.13% and the S&P 500's gain of 2.72% [1]. - The upcoming earnings report is expected to show an EPS of $1.65, reflecting a 4.62% decline year-over-year, while revenue is forecasted to be $1.34 billion, indicating a 4.58% growth [2]. Earnings Estimates - Full-year Zacks Consensus Estimates predict earnings of $4.88 per share and revenue of $4.41 billion, representing year-over-year changes of +21.7% and +6.68%, respectively [3]. - Recent changes in analyst estimates for Hasbro are crucial as they indicate the evolving business trends and analysts' outlook on the company's health and profitability [3][4]. Valuation Metrics - Hasbro's Forward P/E ratio stands at 15.27, which is a premium compared to the industry average Forward P/E of 10.32 [6]. - The company has a PEG ratio of 0.96, which is lower than the Toys - Games - Hobbies industry average PEG ratio of 1.54 [6]. Industry Context - The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector and currently holds a Zacks Industry Rank of 194, placing it in the bottom 22% of over 250 industries [7]. - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, indicating that higher-ranked industries tend to outperform lower-ranked ones [7].

Company Overview - Hasbro, Inc. has a market cap of $10.5 billion and is recognized for its brands like Monopoly, NERF, and Transformers [1] - The company operates in consumer products, Wizards of the Coast & digital gaming, and entertainment/licensing, focusing on scaling gaming and licensing while streamlining traditional toy operations [1] Market Position - Hasbro is classified as a "large-cap" stock due to its valuation, and it has a diverse intellectual property portfolio that includes both traditional toys and high-growth gaming franchises [2] - The company benefits from a strong recurring revenue model through Wizards of the Coast, particularly with Magic: The Gathering and Dungeons & Dragons, which have a dedicated player base [2] Stock Performance - Hasbro's stock has experienced a decline of 8.5% from its 52-week high of $82.19, while gaining 3.7% over the past three months, underperforming the Nasdaq Composite's 13% rise [3] - Year-to-date, HAS stock has increased by 34.6%, outperforming the Nasdaq's 16.5% rise, but has only surged 4.6% over the past 52 weeks compared to the Nasdaq's 24.5% [4] Financial Results - In Q2 2025, Hasbro reported an adjusted EPS of $1.30 and revenue of $980.8 million, exceeding market expectations [5] - Despite the positive earnings report, shares dropped 2.3% due to a 16% decline in consumer products sales, attributed to U.S. retailers holding back orders amid tariff concerns [5] - Nearly half of Hasbro's sourcing is from China, leading to expected tariff-related costs of $60 million, although management aims to reduce this sourcing to 40% by 2027 [5]

Group 1 - The average brokerage recommendation (ABR) for Hasbro (HAS) is 1.21, indicating a consensus between Strong Buy and Buy, with 10 out of 12 recommendations being Strong Buy [2][4] - Strong Buy and Buy recommendations account for 83.3% and 8.3% of all recommendations, respectively [2] - The Zacks Consensus Estimate for Hasbro's earnings has increased by 0.2% over the past month to $4.88, reflecting analysts' growing optimism about the company's earnings prospects [13] Group 2 - The Zacks Rank for Hasbro is 2 (Buy), influenced by the recent change in consensus estimates and other earnings-related factors [14] - The ABR may not be a reliable standalone indicator for investment decisions, as brokerage recommendations often exhibit a positive bias due to vested interests [5][10] - The Zacks Rank is a more effective tool for predicting stock price movements, as it is based on earnings estimate revisions and is updated more frequently than the ABR [11][12]

Core Insights - Three stocks with strong growth characteristics and buy ranks are highlighted for investors: PHINIA Inc., Hasbro, Inc., and Primoris Services Corporation [1][2][3] Company Summaries - **PHINIA Inc. (PHIN)**: - Provides fuel systems, electrical systems, and aftermarket solutions for internal combustion engine vehicles and industrial applications - Holds a Zacks Rank 1 - Current year earnings estimate increased by 9.4% over the last 60 days - PEG ratio of 0.52 compared to the industry average of 1.15 - Growth Score of B [1][2] - **Hasbro, Inc. (HAS)**: - Engages in play and entertainment - Holds a Zacks Rank 1 - Current year earnings estimate increased by 13.5% over the last 60 days - PEG ratio of 0.96 compared to the industry average of 1.22 - Growth Score of B [2] - **Primoris Services Corporation (PRIM)**: - Provides infrastructure services - Holds a Zacks Rank 1 - Current year earnings estimate increased by 6.2% over the last 60 days - PEG ratio of 2.05 compared to the industry average of 5.26 - Growth Score of B [3]

Group 1: Trading Card Market Dynamics - Hasbro Inc. and Target Corporation are experiencing a surge in trading-card demand, particularly for Magic: The Gathering, which is expected to drive growth into late 2025 [1][2] - Retailers are increasing shelf space for trading cards and collectibles, with Target reporting a 70% year-to-date sales increase, projected to exceed $1 billion in 2025 [4] - The Wizards Play Network store count has grown by approximately 1,500 locations since year-end 2024, indicating a 20% growth in distribution [5] Group 2: Consumer Engagement and Market Trends - The U.S. population aged 0–12 peaked in 2016 and is expected to decline through 2036, prompting retailers to focus on higher-engagement categories like trading cards [6] - Unique players in the trading card ecosystem increased by about 40% year-over-year in the first half of 2025, with event attendance at MagicCon rising over 25% from the previous year [5] Group 3: Financial Outlook and Revenue Projections - Bank of America analyst Alexander Perry has adjusted Mattel's third-quarter EPS forecast to $1.02, down from $1.08, while expecting a holiday rebound [7] - For Hasbro, consumer products revenue is projected to decline by 3.5% in the third quarter but improve to approximately +1.0% in the fourth quarter [7] - Global video-game spending has been growing at a high-single-digit pace since 2010, contrasting with low-single-digit growth for traditional toys, highlighting a shift in consumer spending [8]

Economic Overview - Wall Street resumed its rally following a 25 basis points rate cut by the Federal Reserve, with the Dow and Nasdaq reaching record highs, indicating regained investor confidence [1][3] - The Federal Reserve raised its GDP forecast for the year, reflecting a positive sentiment in the economy as inflation has eased substantially [1][6] Rate Cuts and Economic Impact - The Federal Reserve's recent rate cut to a range of 4-4.25% is aimed at addressing concerns over a struggling labor market and a slowing economy, with expectations of two more rate cuts this year [3][5][9] - Lower borrowing costs are anticipated to benefit the broader economy, particularly in consumer discretionary sectors [6][9] Consumer Discretionary Stocks - Boyd Gaming Corporation (BYD) has an expected earnings growth rate of 5.2%, with a 4.9% improvement in the Zacks Consensus Estimate over the last 60 days [7] - Norwegian Cruise Line Holdings Ltd. (NCLH) is projected to have a 13.7% earnings growth rate, with a 3% increase in the Zacks Consensus Estimate [8] - Ralph Lauren Corporation (RL) shows a strong expected earnings growth rate of 19.8%, with an 8.4% improvement in the Zacks Consensus Estimate [10] - Hasbro, Inc. (HAS) has an expected earnings growth rate of 21.5%, with a notable 14.6% increase in the Zacks Consensus Estimate [11] - Grand Canyon Education, Inc. (LOPE) is expected to see a 12.8% earnings growth rate, with a 3.7% improvement in the Zacks Consensus Estimate [12][13]

Group 1 - Hasbro, Inc. ranks among the best performing S&P 500 stocks in the last 3 months, with Goldman Sachs reaffirming a Buy rating and a price target of $89 following an investor meeting [1] - The analysis by Goldman Sachs focused on growth catalysts for Hasbro's Magic the Gathering franchise through 2026 and beyond, highlighting the trading card game's sustained relevance [1] - Hasbro's planned release of Exodus, its first self-published video game, was discussed, along with potential margin effects from this strategic shift [2] Group 2 - Increased profitability prospects in Hasbro's Consumer Products division were a significant topic at the investor meeting, along with considerations of how future tariffs may impact this business unit [2] - Hasbro operates in four business segments: Consumer Products, Wizards of the Coast and Digital Gaming, Entertainment, and Corporate and Other [3]

Sep 8, 2025 1:30 PM Eastern Daylight Time A New Era of Play: Hasbro Makes a Move to Boston The 400 Summer Street facility, developed and owned by WS Development, will house teams that power some of the world's most iconic brands, occupying seven floors across 265,000 square feet. The new space will be home to at least 700 full-time employees expected to transition from Rhode Island to Boston by the end of 2026. "We are thrilled that Hasbro has chosen Massachusetts as the home of its new headquarters, and we ...

The Zacks Toys - Games - Hobbies industry benefits from strong franchise and licensing partnerships, robust e-commerce and omnichannel sales, and consistent innovation in product categories. The robust demand for smart toys, STEM (science, technology, engineering and math) toys, sports toys, and fashion dolls and accessories bodes well. Industry participants have been focusing on the better execution of marketing and promotional initiatives to drive growth. Stocks like Hasbro, Inc. ((HAS) and Mattel, Inc. ( ...

PAWTUCKET, R.I. & BURBANK, Calif.--(BUSINESS WIRE)--Hasbro, Inc. (NASDAQ: HAS), a leading games, IP and toy company, and Disney Consumer Products today announced a new, expanded collaboration between the PLAY-DOH brand and Disney to champion the power of imagination through immersive sensory play, storytelling, and experiences. The collaboration will feature PLAY-DOH compound-led play systems inspired by the magic of beloved Disney characters and stories. The debut collection of PLAY-DOH playse. ...