Mattel, Inc. (MAT) Hits Fresh High: Is There Still Room to Run?

Shares of Mattel (MAT) have been strong performers lately, with the stock up 22.4% over the past month. The stock hit a new 52-week high of $22.07 in the previous session. Mattel has gained 23.8% since the start of the year compared to the 8.7% move for the Zacks Consumer Discretionary sector and the 14% return for the Zacks Toys - Games - Hobbies industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 4, 2025, Mattel reported EPS of $0.35 versus consensus estimate of $0.23 while it missed the consensus revenue estimate by 0.53%.For the current fiscal year, Mattel is expected to post earnings of $1.70 per share on $5.46 billion in revenues. This represents a 4.94% change in EPS on a 1.42% change in revenues. For the next fiscal year, the company is expected to earn $1.80 per share on $5.59 billion in revenues. This represents a year-over-year change of 6.08% and 2.5%, respectively.Valuation MetricsMattel may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Mattel has a Value Score of B. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 12.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13.5X. On a trailing cash flow basis, the stock currently trades at 11.6X versus its peer group's average of 7.3X. Additionally, the stock has a PEG ratio of 2.37. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Mattel currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Mattel passes the test. Thus, it seems as though Mattel shares could have potential in the weeks and months to come.How Does MAT Stack Up to the Competition?Shares of MAT have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is JAKKS Pacific, Inc. (JAKK). JAKK has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of D.Earnings were strong last quarter. JAKKS Pacific, Inc. beat our consensus estimate by 34.93%, and for the current fiscal year, JAKK is expected to post earnings of $4.21 per share on revenue of $694.56 million.Shares of JAKKS Pacific, Inc. have gained 23% over the past month, and currently trade at a forward P/E of 8.09X and a P/CF of 6.35X.The Toys - Games - Hobbies industry is in the top 5% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MAT and JAKK, even beyond their own solid fundamental situation.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mattel, Inc. (MAT): Free Stock Analysis Report JAKKS Pacific, Inc. (JAKK): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks