Hasbro (HAS) Laps the Stock Market: Here's Why

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].