Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that help investors select stocks likely to outperform the market in the next 30 days, rated from A to F based on value, growth, and momentum characteristics [2][7] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow to find attractive investment opportunities [3] Growth Score - The Growth Score emphasizes a company's financial health and future potential, analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth [4] Momentum Score - The Momentum Score is designed for traders who capitalize on price trends, using metrics like one-week price changes and monthly earnings estimate changes to identify high-momentum stocks [5] VGM Score - The VGM Score combines Value, Growth, and Momentum Scores, serving as a comprehensive indicator to identify stocks with the best overall potential [6] Zacks Rank Integration - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7][10] - To optimize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering earnings estimate trends [9][10] Company Spotlight: Hasbro Inc. - Hasbro Inc., based in Pawtucket, RI, specializes in designing, manufacturing, and marketing games and toys, with a diverse product range under well-known brands [11] - Currently rated 3 (Hold) by Zacks, Hasbro has a VGM Score of A and a Momentum Style Score of B, with shares increasing by 1.6% over the past four weeks [12] - Recent upward revisions in earnings estimates by five analysts for fiscal 2025 have raised the Zacks Consensus Estimate by $0.12 to $5.01 per share, alongside an average earnings surprise of +36% [12]

Financial Performance - Hasbro's net revenues for Q3 2025 increased by 8.3% to $1,387.5 million from $1,281.3 million in Q3 2024, driven primarily by a 41.6% growth in the Wizards of the Coast and Digital Gaming segment [131]. - The company reported an operating profit of $341.1 million for Q3 2025, representing 24.6% of net revenues, compared to $301.9 million or 23.6% in Q3 2024 [143]. - Total net revenues increased by 7.3% to $3,255.4 million for the first nine months of 2025, up from $3,033.9 million in 2024, with significant growth in the Wizards of the Coast and Digital Gaming segment [180]. - The Wizards of the Coast and Digital Gaming segment net revenues increased by 32.8% to $1,556.5 million for the first nine months of 2025, driven by strong demand for tabletop gaming products [181]. - The Consumer Products segment net revenues decreased by 8.9% to $1,637.6 million for the first nine months of 2025, primarily due to declining sales volumes for brands like NERF and PLAY-DOH [183]. Segment Performance - The Grow Brands portfolio saw a revenue increase of $167.0 million, or 19.9%, in Q3 2025, primarily due to strong performance from MAGIC: THE GATHERING, which grew by $163.2 million, or 55.1% [132][135]. - Operating profit for the Wizards of the Coast and Digital Gaming segment rose to $251.5 million, or 44.0% of segment net revenues, compared to $181.2 million, or 44.9%, in the prior year [152]. - The Consumer Products segment experienced a revenue decline of $63.2 million, or 7.3%, in Q3 2025, indicating challenges in this area [131]. - Entertainment segment net revenues increased by 8.1% to $18.6 million in Q3 2025, driven by streaming renewals and investments in the PEPPA PIG brand [155]. - The Reinvent Brands portfolio revenues decreased by 19.3% to $354.3 million in the first nine months of 2025, primarily due to lower sales of NERF products and decreased licensing revenues for MY LITTLE PONY [162]. Expenses and Costs - Selling, distribution, and administration expenses decreased to $287.3 million, or 20.7% of net revenues, in Q3 2025, down from $299.3 million, or 23.4% in Q3 2024, due to cost savings initiatives [142]. - Cost of sales for the first nine months of 2025 was $844.1 million, or 25.9% of net revenues, compared to $820.8 million, or 27.1% of net revenues, for the same period in 2024, reflecting improved supply chain efficiencies [163]. - Product development expenses rose to $255.6 million, or 7.9% of net revenues, for the first nine months of 2025, compared to $212.2 million, or 7.0% of net revenues, in 2024, due to higher investments in Grow Brands [166]. - Advertising expenses increased to $227.3 million, or 7.0% of net revenues, for the first nine months of 2025, from $213.8 million, or 7.0% of net revenues, in 2024, primarily to support growth in the Grow Brands category [167]. Cash Flow and Debt - Net cash provided by operating activities was $490.0 million in the first nine months of 2025, down from $587.6 million in the same period of 2024, a decrease of $97.6 million attributed to changes in net working capital and tariffs [200]. - Net cash utilized for investing activities was $191.8 million in the first nine months of 2025, significantly lower than $635.4 million in the same period of 2024, with long-term investments of $55.2 million made in 2025 [201]. - Net cash utilized by financing activities was $375.1 million in the first nine months of 2025, compared to a cash inflow of $190.8 million in 2024, primarily due to $294.2 million in dividends paid [202]. - The Company had $3.3 billion of long-term debt due from 2026 through 2044, with $65.0 million of outstanding debt repurchased during 2025 [196]. - The Company is exposed to approximately $20 million in tariffs during the first nine months of 2025, which may impact future financial results [192]. Strategic Initiatives - The company plans to relocate its Rhode Island operations to Boston, Massachusetts, expected to be completed in Q4 2026, to enhance innovation and attract talent [120]. - Hasbro's Playing to Win strategy includes five strategic building blocks aimed at expanding consumer reach and driving profitability through innovation and partnerships [118][121]. Market Risks and Economic Factors - The Company continues to monitor the impact of trade policy changes and tariffs on its operations, which could adversely affect financial results [123]. - The Company is monitoring inflation's impact on its operations and may need to implement price adjustments to mitigate future inflation effects [214]. - Future volatility in general price inflation could negatively affect consumer purchases and spending on entertainment [214]. - The impact of inflation on material costs, shipping, warehousing, and operational overhead could adversely affect the Company's financial results [214].

Core Viewpoint - The investment outlook for Hasbro Inc. (HAS) remains positive, with expectations for continued earnings growth serving as a catalyst for increasing multiples [1] Group 1: Investment Strategy - The investment approach is centered on long-term investments while also utilizing short-term shorts to identify alpha opportunities [1] - The analysis is based on a bottom-up approach, focusing on the fundamental strengths and weaknesses of individual companies [1] - The investment duration is categorized as medium to long-term, aiming to identify companies with solid fundamentals and sustainable competitive advantages [1]

Core Viewpoint - The investment outlook for Hasbro Inc. (HAS) remains positive, with expectations for continued earnings growth serving as a catalyst for increasing multiples [1] Group 1: Investment Strategy - The investment approach is centered on long-term investments while also utilizing short-term shorts to identify alpha opportunities [1] - The analysis is based on a bottom-up approach, focusing on the fundamental strengths and weaknesses of individual companies [1] - The investment duration is categorized as medium to long-term, aiming to identify companies with solid fundamentals and sustainable competitive advantages [1]

Legal and Economic Implications - The Supreme Court is set to deliberate on the legality of Trump's tariffs, with businesses and states challenging his authority under the International Emergency Economic Powers Act (IEEPA) [2] - A ruling against the administration could result in the government needing to refund $100 billion in tariff revenue and potentially losing billions annually [3] - Treasury Secretary Steven Mnuchin anticipates the Supreme Court will uphold the tariffs but has contingency plans involving other statutes that could allow tariffs of up to 50% [3] Market Reactions and Performance - The stock market's recent surge is attributed to the "artificial-intelligence mania," particularly driven by tech giants like Nvidia and Microsoft, rather than tariffs [4] - On November 4, 2025, the S&P 500 closed at 6,771.55, down 1.17%, while the Nasdaq Composite fell 2.04% to 23,348.64, and the Dow Jones Industrial Average decreased by 0.53% to 47,085.24 [4] - Trump's tariff decisions have cumulatively subtracted $4.7 trillion from the market value of the S&P 500 between November 2024 and April 2025, including a $2 trillion hit to the "Magnificent Seven" tech companies [5] Industry-Specific Impacts - The entertainment industry is facing a 100% tariff on foreign-made movies, leading to significant stock declines for companies like Netflix (down 3.3%) and Walt Disney (down 1.5%) [6] - The toy industry has seen tariffs as high as 22.4% for baby items and 20% for toys, resulting in price hikes and potential closures of small businesses [7] - Pharmaceutical giant Johnson & Johnson revised its expected tariff impact for 2025 from $400 million to $200 million, indicating that tariffs could disrupt drug supply chains [8] Broader Market Sentiment - Analysts express concerns over Trump's use of emergency powers for tariffs, with warnings about "overheated valuations" in the tech sector and a possible market correction of 10-20% [9] - Trump's social media commentary often contrasts with actual market performance, as seen in his claims of record highs despite recent market dips [9] - The parent company of Truth Social, Trump Media & Technology Group, has experienced significant stock volatility, reflecting broader market trends [10]

Group 1 - Retailers have been destocking inventories and delaying orders with Hasbro and Mattel due to tariffs and trade uncertainty, leading to a summer slowdown, but conditions have started to improve in September and October [3][7] - Mattel expects total sales to increase between 1% and 3% over last year's $5.4 billion, with adjusted operating income anticipated between $700 million and $750 million, consistent with last year [4] - Hasbro plans to reduce its reliance on China for toy and game revenue to 30% by 2026, down from about 50% at the start of the year, while aiming for 30% of its revenue to be based in the U.S. by next year [6] Group 2 - Mattel's Q3 sales were $1.7 billion, a decline of 6% year-over-year, while Hasbro's consumer products revenue fell 7% year-over-year, with operating profit down 32% [7] - Both companies are starting to see a recovery in orders, with Mattel's CEO noting significant acceleration in orders since the beginning of October [7]

Group 1 - The earnings season has started impressively, with strong performances from major banks and corporate America despite economic uncertainty and tariffs [1][2] - Three early themes have emerged: consumers are resilient against tariff-related cost increases, companies are facing profit pressures due to tariffs, and CFOs are managing earnings expectations effectively [3][2] - General Motors exceeded earnings estimates and raised guidance, citing a resilient consumer and stable auto loan defaults [4] Group 2 - Hasbro reported accelerated sales driven by demand for toys, leading to an increase in full-year sales forecasts [5] - T-Mobile's incoming CEO highlighted better-than-expected customer additions and raised profit guidance [6] - Hilton and AT&T also reported earnings beats and positive outlooks, reflecting consumer resilience [7]

Core Insights - Both companies experienced a soft third quarter due to changing customer buying habits [1] - The outlook for the fourth quarter appears more positive [1] Company Performance - The third quarter results were impacted negatively by shifts in consumer purchasing behavior [1] - Anticipation for improved performance in the fourth quarter suggests potential recovery [1]

Core Insights - Hasbro, Inc. reported strong third-quarter 2025 revenue growth, primarily driven by the Wizards of the Coast and Digital Gaming segments, reinforcing its strategic growth engine [1] Group 1: Financial Performance - Wizards of the Coast achieved a 42% revenue increase to $572 million, with Magic: The Gathering rising 55% year over year due to successful collaborations like Final Fantasy and Spider-Man [2] - The operating profit for Wizards of the Coast surged 39% to $252 million, reflecting a 44% margin, highlighting the scalability of Magic and the advantages of brand partnerships [2] - Hasbro raised its 2025 revenue outlook, now expecting high single-digit growth on a constant currency basis, up from mid-single digits, with adjusted EBITDA projected between $1.24 billion and $1.26 billion [6] Group 2: Segment Highlights - Dungeons & Dragons is experiencing its strongest start ever, aided by new rulebooks and a digital expansion that has significantly increased traffic to D&D Beyond by nearly 50% [3] - Hasbro's digital titles, including Monopoly Go! and SORRY! World, are performing well in mobile charts, indicating strong engagement in digital gaming [3] Group 3: Strategic Outlook - Management emphasized that Wizards and Digital Gaming are essential for sustained growth, with guidance indicating a 36-38% revenue increase for Wizards and margins near 44% [4] - The company’s "Playing to Win" strategy, focused on high-engagement franchises and digital experiences, is proving effective, positioning Hasbro to maintain its leadership in the global play and gaming market [5]

Core Insights - Hasbro reported an 8% increase in quarterly revenue, driven by its Wizards of the Coast and digital gaming segments, despite challenges in its consumer products segment which saw a 7% year-over-year decline due to trade issues and delayed orders [2][3] - The company anticipates a total tariff impact of $60 million for 2025, with $20 million affecting the third quarter, and is restructuring its sourcing to mitigate risks [3] - Hasbro is observing a divergence in consumer spending behavior, with the top 20% of households continuing to spend robustly, while the remaining households are more price-sensitive [4][5] Revenue and Segments - The increase in revenue is attributed to strong performance in the gaming segments, while the consumer products segment faced a decline due to trade challenges and order delays [2] - Approximately half of Hasbro's products are priced below $20 to cater to price-sensitive consumers [4] Consumer Behavior - The company is witnessing a "tale of two consumers," where affluent households are spending more, while others are being cautious with their spending [4] - A significant portion of U.S. consumers, 68%, reported living paycheck to paycheck, indicating a cautious spending environment [6] Competitive Landscape - Rival company Mattel also faced challenges in the third quarter due to shifts in retailer ordering patterns but noted an increase in orders as the holiday season approached [6][7]