Why Hasbro (HAS) Outpaced the Stock Market Today

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The most recent trading session ended with Hasbro (HAS) standing at $57.58, reflecting a +1.89% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 1.09% for the day. At the same time, the Dow added 1.18%, and the tech-heavy Nasdaq gained 1.03%.

The toy maker's stock has dropped by 8.72% in the past month, falling short of the Consumer Discretionary sector's gain of 0.49% and the S&P 500's loss of 0.71%.

Market participants will be closely following the financial results of Hasbro in its upcoming release. The company is expected to report EPS of $0.37, down 2.63% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.03 billion, down 20.28% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $3.93 per share and a revenue of $4.06 billion, demonstrating changes of +56.57% and -18.82%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Hasbro. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Hasbro presently features a Zacks Rank of #3 (Hold).

Looking at valuation, Hasbro is presently trading at a Forward P/E ratio of 14.38. This denotes a premium relative to the industry's average Forward P/E of 13.31.

Meanwhile, HAS's PEG ratio is currently 0.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Toys - Games - Hobbies industry stood at 0.92 at the close of the market yesterday.

The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 22, this industry ranks in the top 9% of all industries, numbering over 250.