Hasbro Moves 6.0% Higher: Will This Strength Last?

Hasbro HAS shares ended the last trading session 6% higher at $61.50. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.5% loss over the past four weeks.

Shares of Hasbro surged, after an analyst at Bank of America upgraded the company's rating. Per the report, the analyst revised price targets, backed by an accelerating digital growth and a recovering physical play business. The outlook for Hasbro's Magic business remains stable, buoyed by enthusiasm for upcoming releases like Modern Horizons 3. Looking ahead to 2025, analysts foresee continued momentum supported by full-year royalties from Monopoly Go!, potential growth in consumer products and a promising theatrical content lineup.

This toy maker is expected to post quarterly earnings of $0.74 per share in its upcoming report, which represents a year-over-year change of +51%. Revenues are expected to be $938.32 million, down 22.5% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Hasbro, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on HAS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy).

Hasbro is a member of the Zacks Toys - Games - Hobbies industry. One other stock in the same industry, Jakks Pacific JAKK, finished the last trading session 0.3% lower at $18.11. JAKK has returned -7.9% over the past month.

For Jakks, the consensus EPS estimate for the upcoming report has changed -4.2% over the past month to $0.86. This represents a change of -31.8% from what the company reported a year ago. Jakks currently has a Zacks Rank of #3 (Hold).

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