Industry Overview - The Zacks Toys - Games – Hobbies industry is experiencing robust demand for smart toys, STEM toys, sports toys, and fashion dolls and accessories, with companies focusing on digital initiatives and marketing strategies to drive growth [1][3] - The industry includes companies that design, manufacture, and sell various games and toys, ranging from traditional action figures to video game platforms and military simulation games [2] Trends Impacting the Industry - STEM toys are gaining popularity as parents seek educational experiences that promote problem-solving and creativity, with significant growth potential in markets like China and Brazil [3] - Industry participants are expanding their presence in emerging markets in Eastern Europe, Asia, and Latin and South America, which offer greater revenue growth opportunities compared to developed markets [4] Sales and Market Performance - U.S. toy industry sales increased by 6% with a 3% rise in units sold through April 2025, driven by strong adult demand for trading cards and building sets, with adult buyers spending $1.8 billion in Q1 2025 [5] - The Zacks Toys – Games – Hobbies industry has outperformed the S&P 500 Index, rallying 13.4% compared to the S&P 500's 11.9% increase [9] Cost and Valuation Concerns - The industry faces cost inflation due to rising raw material prices and higher employee-related expenses, prompting firms to launch new products and shift towards technology-driven toys [6] - The industry is currently trading at a forward P/E of 13.05X, lower than the S&P 500's 21.94X and the sector's 19.89X, indicating potential undervaluation [12] Company Performance - JAKKS Pacific is benefiting from its Freight on Board business model and licensing initiatives, with shares gaining 18.9% in the past year and projected earnings growth of 9.5% for 2025 [15][22] - Mattel has seen strong performance from brands like Disney Princess and Barbie, with shares up 8% in the past year and 2025 earnings expected to remain stable at $1.62 [18][19] - Hasbro is experiencing growth from its MAGIC ecosystem and licensing operations, with shares increasing by 13.4% in the past year and a projected earnings increase of 5.2% for 2025 [21][22]

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Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to inherent volatility and risks [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Jakks Pacific (JAKK) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly attractive [4] - Jakks has a historical EPS growth rate of 18.5%, with projected EPS growth of 9.5% this year, significantly outperforming the industry average of 5.3% [5] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important indicator of efficiency in growth investing [6] - Jakks has an S/TA ratio of 1.63, indicating it generates $1.63 in sales for every dollar in assets, compared to the industry average of 0.86 [6] Group 4: Sales Growth - Sales growth is another key metric, with Jakks expected to achieve a sales growth of 2.1% this year, surpassing the industry average of 1.4% [7] Group 5: Earnings Estimate Revisions - Trends in earnings estimate revisions are correlated with stock price movements, with positive revisions being favorable [8] - Jakks has seen its current-year earnings estimates revised upward, with the Zacks Consensus Estimate increasing by 11.5% over the past month [9] Group 6: Overall Assessment - Jakks has achieved a Zacks Rank 1 due to favorable earnings estimate revisions and has earned a Growth Score of A based on multiple positive factors [10]

Core Viewpoint - Jakks Pacific (JAKK) shares have increased by approximately 5.3% over the past month, underperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Group 1: Earnings and Estimates - No earnings estimate revisions have been made by analysts in the last two months [2] Group 2: VGM Scores - Jakks has a strong Growth Score of A, but a low Momentum Score of F; it also holds an A grade for value, placing it in the top 20% for this investment strategy, resulting in an aggregate VGM Score of A [3] Group 3: Outlook - Jakks holds a Zacks Rank 1 (Strong Buy), indicating expectations for above-average returns in the coming months [4] Group 4: Industry Performance - Jakks is part of the Zacks Toys - Games - Hobbies industry, where Hasbro (HAS) has seen a 7.1% increase in the past month; Hasbro reported revenues of $887.1 million for the last quarter, reflecting a year-over-year increase of 17.1% [5] - Hasbro's expected earnings for the current quarter are $0.77 per share, indicating a year-over-year decline of 36.9%, with a Zacks Rank 3 (Hold) and a VGM Score of B [6]

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they bel ...

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, is a strategic approach for evaluating companies, especially those that are unprofitable or in early growth stages [1][3][5] Group 1: Price-to-Sales Ratio - The price-to-sales ratio is a valuable metric that reflects how much investors pay for each dollar of revenue generated by a company [3] - A P/S ratio below 1 indicates a good bargain, as investors pay less than a dollar for a dollar's worth of revenue [4] - The P/S ratio is often preferred over the price-to-earnings ratio due to the difficulty of manipulating sales figures compared to earnings [5] Group 2: Screening Parameters - Companies should have a price-to-sales ratio less than the median for their industry, along with a price-to-earnings ratio below the industry median [7] - A debt-to-equity ratio less than the industry median is also recommended, as lower debt levels contribute to a stable P/S ratio [8] - Stocks should be trading at a minimum price of $5 and have a Zacks Rank of 1 (Strong Buy) or 2 (Buy) to ensure better performance [8] Group 3: Company Profiles - Green Dot (GDOT) is a pro-consumer bank holding company with a strong position in prepaid cards and Banking-as-a-Service, boasting a Zacks Rank 1 and a Value Score of A [10][11] - JAKKS Pacific (JAKK) has diversified through acquisitions and focuses on online retailing, currently holding a Zacks Rank 2 and a Value Score of A [12][13] - PCB Bancorp (PCB) offers a range of banking products and has a strategic expansion plan, with a Value Score of A and a Zacks Rank 2 [14][15] - Gibraltar Industries (ROCK) focuses on operational improvements and has a Value Score of B with a Zacks Rank 2, benefiting from high demand in agricultural facilities [16][17] - Pfizer (PFE) is committed to developing treatments across various therapeutic areas and expects better non-COVID operational revenue growth, holding a Value Score of A and a Zacks Rank 2 [18][19]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - Jakks Pacific (JAKK) is highlighted as a recommended growth stock based on its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 18.5%, with projected EPS growth of 12.7% this year, significantly outperforming the industry average of 4.2% [5] Group 2: Key Growth Metrics - The asset utilization ratio for Jakks is 1.63, indicating that the company generates $1.63 in sales for every dollar in assets, compared to the industry average of 0.86, showcasing superior efficiency [6] - Jakks is expected to achieve a sales growth of 1.3% this year, slightly above the industry average of 1% [7] Group 3: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Jakks, with the Zacks Consensus Estimate for the current year increasing by 3.8% over the past month [8] - The combination of a Zacks Rank 2 and a Growth Score of A positions Jakks as a potential outperformer for growth investors [9][10]

Jakks Pacific (JAKK) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a changing ear ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics a ...

Technical Analysis - Jakks Pacific (JAKK) has reached a significant support level and is considered a good pick for investors from a technical perspective [1] - JAKK recently broke through the 50-day moving average, indicating a short-term bullish trend [1] Performance Metrics - JAKK has rallied 18.2% over the past four weeks, suggesting potential for further gains [2] - The company currently holds a Zacks Rank 2 (Buy), indicating positive market sentiment [2] Earnings Estimates - Positive earnings estimate revisions support the bullish case for JAKK, with no estimates decreasing in the past two months and one estimate increasing [2] - The consensus estimate for JAKK has also increased, further solidifying the positive outlook [2] Investment Outlook - Investors are encouraged to watch JAKK for potential gains in the near future, given its key technical level and positive earnings revisions [3]