Shares of JAKKS Pacific, Inc. JAKK have rallied 52.1% in the past six months, significantly outperforming 15.5% growth registered by the Zacks Toys - Games - Hobbies industry. JAKK also outpaced the broader Consumer Discretionary sector and the S&P 500 index's 13.8% and 10.3% growth, respectively, during the same period.
The company is benefiting from retail expansion and product launches. Its focus on brand collaborations and licensing partnerships supports growth. The company’s efforts to diversify its product line and expand internationally further contribute to its success.
Zacks Investment Research
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Factors Driving JAKK’s Surge
New Product Launches Fuel Growth: The company continues to expand its product offerings through innovative designs and strategic collaborations, enhancing its market presence. In the third quarter of 2024, the company introduced a new toy check lane at Target, following the success of its Target shopping cart and cash register. In addition to this, the company launched several key products in the third quarter of 2024, including the Super Mario Course Complete Playset, allowing fans to recreate the excitement of the iconic video games.
Looking ahead, the company is set to introduce the first collectible line of Star Wars Tsum Tsum in spring 2025, along with new collectible lines under Disney's musical minis and Ili Tot Ili Teenies, also expected to hit shelves in the same period.
Expanding Retail Presence: JAKKS Pacific focuses on expanding its reach to include prominent accounts such as Macy's and Amazon in the United States and Sainsbury's in the U.K. The company is focusing on securing key partnerships with major retailers and expanding its presence through exclusive product offerings. With a strategic focus on theatrical releases and new product lines, JAKKS Pacific is well-positioned to grow its market share and meet consumer demand across a variety of channels.
The company is set to launch a broad range of products under the Authentic Brands Group (ABG) line in spring 2025. This collection will include inflatables, skateboards, inline skates, beach and park chairs, umbrellas, and carriers, among other items. The ABG product line will feature well-known brands such as Element, Quiksilver, Roxy, Billabong, Volcom, Forever 21, Juicy Couture, Sports Illustrated, and Prince, further expanding the company's diverse portfolio.
Boosting Brand Collaborations & Licensing: JAKKS Pacific has established itself as a leading player in the consumer products space through its strategic brand collaborations and licensing agreements. The company has formed partnerships with a variety of well-known brands, including Disney, Skechers, Nickelodeon, and Pokémon.
These collaborations have allowed JAKKS Pacific to develop and distribute an extensive range of toys, merchandise, and content. These partnerships not only enhance the company’s product portfolio but also provide access to popular intellectual properties that attract a broad consumer base. Recently, the company expanded its Pokémon costume rights into Europe, with products expected to ship in 2025 to the United Kingdom and the European Union.
In addition to expanding its brand relationships, JAKKS Pacific has focused on increasing its presence across diverse categories and retail channels. By securing licensing agreements with prominent global brands, the company can introduce a wide array of new products, ranging from outdoor accessories to fashion-infused items. These efforts, combined with a strategic focus on expanding its distribution channels, position JAKKS Pacific for continued growth in both domestic and international markets.
Strengthening International Presence: The company is expanding its presence outside the United States by opening sales offices and increasing distribution agreements. Its partnership with Meisheng is expected to drive significant growth in Asia. These initiatives are aimed at strengthening the company's international reach, boosting sales, and improving profit margins. Additionally, the company is likely to attract more licenses through these efforts.
Estimate Revision of JAKK Stock
Zacks Investment Research
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for JAKK’s 2025 earnings per share (EPS) has moved up 7.1% in the past 30 days. The upward revision in earnings estimates indicates analysts’ increasing confidence in the stock.
Conclusion
JAKKS Pacific’s retail expansion, strategic brand collaborations, and diverse product launches position the company for continued growth. With a focus on global partnerships and new product lines, this Zacks Rank #1 (Strong Buy) company is well-equipped to capture increased market share across domestic and international markets, making it an attractive stock for investors.
Other Stocks to Consider
Some other top-ranked stocks in the Zacks Consumer Discretionary sector are:
Cinemark Holdings, Inc. CNK currently carries a Zacks Rank #2 (Buy). CNK delivered a trailing four-quarter earnings surprise of 164.8%, on average. The stock has surged 119.1% in the past year. You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for CNK’s 2025 sales indicates growth of 11.1% from the year-ago levels.
Norwegian Cruise Line Holdings Ltd. NCLH currently has a Zacks Rank #2. NCLH delivered a trailing four-quarter earnings surprise of 4.2%, on average. The stock has surged 29.4% in the past year.
The Zacks Consensus Estimate for NCLH’s 2025 sales and EPS indicates growth of 8.3% and 25.4%, respectively, from the year-ago levels.
Royal Caribbean Cruises Ltd. RCL currently carries a Zacks Rank #2. RCL delivered a trailing four-quarter earnings surprise of 16.2%, on average. The stock has surged 84.9% in the past year.
The Zacks Consensus Estimate for RCL’s 2025 sales and EPS indicates growth of 9.5% and 23.8%, respectively, from the year-ago levels.
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