Why Mattel (MAT) is a Top Value Stock for the Long-Term

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][5] - The Zacks Style Scores are designed to help investors select stocks with the highest potential for market outperformance over the next 30 days [1][2] Style Scores Overview - Each stock is rated from A to F based on value, growth, and momentum characteristics, with A indicating the highest potential for outperformance [2] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [2][4] Value Score - The Value Score identifies stocks trading below their true value by analyzing ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [2] Growth Score - The Growth Score emphasizes a company's financial health and future outlook, using projected and historical earnings, sales, and cash flow [2] Momentum Score - The Momentum Score focuses on trends in stock prices and earnings outlooks, utilizing factors like one-week price changes and monthly earnings estimate changes [3] VGM Score - The VGM Score combines all three Style Scores to highlight stocks with attractive value, strong growth forecasts, and promising momentum [4] Zacks Rank Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to assist in stock selection, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [5][6] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [6] Company Spotlight: Mattel Inc. (MAT) - Mattel Inc. is the largest toy manufacturer globally, with products sold in various international markets through multiple brands [7] - Currently rated 3 (Hold) on the Zacks Rank, Mattel has a VGM Score of B and a Value Style Score of B, supported by a forward P/E ratio of 14.12 [7][8] - Recent upward revisions in earnings estimates by analysts have increased the Zacks Consensus Estimate for fiscal 2024 to $1.37 per share, with an average earnings surprise of 94.6% [7]