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Valued at $10 billion by market cap, Hasbro, Inc. (HAS) is a leading toy and game company. Based in Pawtucket, Rhode Island, the company specializes in designing, manufacturing, and marketing a diverse range of toys and games across various well-known brands.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Hasbro fits this criterion perfectly. Hasbro's uniqueness in the market lies in its successful integration of traditional toys with digital gaming and entertainment, creating expansive narratives that enhance brand loyalty and consumer engagement.
However, shares of the toy and game maker have slipped marginally from its 52-week high of $72.79. Hasbro stock has gained nearly 24% over the past three months, outpacing the broader Dow Jones Industrials Average's ($DOWI) 8% rise over the same time frame.
Longer term, HAS is up 41.2% on a YTD basis, overshadowing DOWI's 12.3% gains. However, shares of Hasbro have increased 10.9% over the past 52 weeks, lagging behind Dow Jones' 26.1% returns over the same time frame.
Yet, HAS has shown a bullish trend, consistently trading above its 200-day moving average since late April, and it has remained mostly above its 50-day moving average since March despite few fluctuations.
Hasbro has outperformed in 2024 due to its successful BluePrint 2.0 strategy, which improved profit margins and boosted revenue from digital gaming and iconic brands. Moreover, on Jul. 25, the stock rose 3.5% after the company reported a smaller-than-expected decline in Q2 sales and exceeded profit expectations, delivering adjusted EPS of $1.22. This positive momentum was driven by effective cost-control measures, including reduced inventory levels, as well as strong performance in digital gaming, particularly from popular titles such as "Monopoly Go!" and "Baldur's Gate 3."
Rival Mattel, Inc. (MAT) has risen marginally on a YTD basis, while HAS stock boasts high double-digit returns over the same time frame. Also, over the past 52 weeks, shares of Mattel have declined 12.8%, lagging behind HAS’ performance.
Despite the stock's impressive gains in 2024, analysts are cautiously optimistic about its prospects. The stock has a consensus “Moderate Buy” rating overall from the 11 analysts covering the stock, and the mean price target of $74.09 represents a premium of just 2.8% to current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
