Zacks Industry Outlook Highlights Hasbro and Mattel

For Immediate ReleaseChicago, IL – March 18, 2025 – Today, Zacks Equity Research discusses Hasbro, Inc. HAS and Mattel, Inc. MAT.Industry: Toys - Games - HobbiesLink: https://www.zacks.com/commentary/2430856/2-stocks-to-keep-an-eye-on-from-promising-toys-games-industryThe Zacks Toys - Games – Hobbies industry benefits from the robust demand for smart toys, STEM (science, technology, engineering and math) toys, sports toys, and fashion dolls and accessories. Industry participants have been undertaking efforts on the digital front and focusing on better execution of marketing and promotional initiatives to drive growth. Stocks like Hasbro, Inc. and Mattel, Inc. are likely to gain from these trends.Industry DescriptionThe Zacks Toys - Games – Hobbies industry comprises companies that design, manufacture and sell various games and toys. While traditional toymakers primarily focus on marketing and selling action figures, accessories, dolls, youth electronics, and arts and crafts, other industry players develop and market content and services on video game consoles, personal computers and mobile.Some industry participants offer video game platforms, playing cards, Karuta and other products, as well as handheld and home console hardware systems and related software. Some companies develop and operate retail and online military simulation games, and offer multi-player and single-player games.3 Trends Shaping the Future of Zacks Toys - Games - Hobbies IndustrySTEM Toys Gaining Popularity: The increasing demand for educational experiences outside traditional classrooms is a significant factor driving market growth. Parents are increasingly looking for toys that promote problem-solving, creativity, and critical thinking in their children. STEM toys, in particular, are gaining popularity due to their ability to spark curiosity and develop practical skills, making them a top choice for many families.Factors such as heightened interest in coding and robotics toys have significantly shaped the market landscape. Industry players are capitalizing on new distribution methods, developing digital-play components, exploring ventures with other industries and focusing on international expansion to drive growth. The industry has enormous growth potential in China and Brazil.Focus on Emerging Markets: Industry participants are focusing on expanding their presence in emerging markets in Eastern Europe, Asia, and Latin and South America. Emerging markets offer greater opportunities for revenue growth than developed markets.High Costs Remain Concerning: Cost inflation hurt the industry due to rising raw material prices. Higher employee-related expenses are also hurting the industry. The firms have been resorting to product launches and shifting toward more technology-driven toys to boost sales, which might drive profits in the long haul. However, costs related to the initiatives might prove detrimental.Zacks Industry Rank Indicates Bright ProspectsThe Zacks Toys – Games – Hobbies industry is grouped within the broader Zacks Consumer Discretionary Sector.The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects.The Zacks Toys – Games – Hobbies industry currently carries a Zacks Industry Rank #81, which places it in the top 33% of 247 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.Before we present a few stocks that investors can take a look at, let us analyze the industry’s recent stock-market performance and valuation picture.Industry Underperforms the S&P 500The Zacks Toys – Games – Hobbies industry has underperformed the S&P 500 Index. The industry has declined 59.2% over this period against the S&P 500’s rise of 10%. In the same time frame, the sector has risen 2.1%.Industry's Current ValuationComparing the industry with the S&P 500 Index on the basis of forward 12-month price-to-earnings, which is a commonly used multiple for valuing the industry, we see that the industry is trading at 9.28X, lower than the S&P 500’s 20.68X and the sector’s 17.47X.Over the last five years, the industry traded as high as 29.30X and as low as 8.75X, with the median being 14.02X.Two Zacks Toys Stocks to Keep an Eye OnMattel: The company is benefiting from the Optimizing for Profitable Growth program and strong demand for Hot Wheels. This and strategic initiatives toward capturing the full value of its IPs and transforming itself into a high-performing toy company bode well. The company is expecting to realize incremental benefits from the upcoming digital content in 2025.Shares of this Zacks Rank #1 (Strong Buy) company have gained 2.1% in the past year. The company’s 2025 earnings are likely to witness a year-over-year increase of 4.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.Hasbro: The company is benefiting from strong performance across the MAGIC ecosystem. Also, growth in licensing and lower promotional discounts across retailers added to the positives. Going forward, the company emphasizes on Playing to Win strategy to enhance cost efficiency, brand expansion, and digital innovation. Also, focus on the entertainment pipeline, strategic partnerships, and new product innovations bode well.Shares of this Zacks Rank #3 (Hold) company have gained 12.2% in the past year. The company’s 2025 earnings are likely to witness a year-over-year increase of 5.2%.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Hasbro, Inc. (HAS): Free Stock Analysis Report Mattel, Inc. (MAT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks