Are we having fun yet? That's what pop culture figurines, clothes and games maker Funko wants to know. It's had a great run recently, with strong double-digit sales growth and, with one exception, solid quarterly profit growth. On Tuesday, the IBD SmartSelect Composite Rating for Funko stock jumped to a near-best 97, up from 93 the day before.
The revised score means watchlist candidate Funko stock currently tops 97% of all other stocks in terms of key performance metrics and technical strength. The top-performing stocks tend to have a 95 or better grade as they kick off a significant move so be sure to keep that in mind when looking for the best stocks to buy and watch.
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Funko Stock Tied To Pop Culture
Everett, Wash.-based Funko is perhaps best known for its licensed pop culture figurines including recent retro Disney figurines, along with its broad portfolio including Indiana Jones, Mickey Mouse, Donald Duck and Gingerbread Wonder Woman among others. It also sells a wide variety of related products including backpacks, clothes and handbags.
In terms of fundamentals, Funko reported a 35% drop in earnings last quarter — the one recent radar blip on its earnings — to 26 cents per share. However, that came on the heels of 26%, 31% and 42% quarterly EPS growth. In its most recent quarter revenue grew 34% to $315.7 million. In the three stanzas before that its sales popped 40%, 48% and then 63%.
Funko stock recently formed a long cup-with-handle base but has not been able to break out amid the current difficult market. Look for the figurines maker to form and break out of a new base in heavy volume.
Among its other key ratings, Funko stock also has a very strong 96 Relative Strength Rating out of 99. One weak spot to watch is the company's 77 EPS Rating, which tracks quarterly and annual earnings-per-share growth. That's in part tied to the one recent, possibly outlier, earnings dip. Look for the RS Rating to improve to 80 or better to show it's in the top 20% of all stocks.
Its Accumulation/Distribution Rating of C shows a roughly equal amount of buying and selling by institutional investors over the last 13 weeks.
Funko stock holds the No. 2 rank among its peers in the Leisure-Toys/Games/Hobby industry group. Rival figurines and toys maker Jakks Pacific is the top-ranked stock in the group. Mattel and Hasbro are also among the top-rated companies in the group.
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