Don't Play Games With This Excellent Consumer Facing Stock

Trying to find a stock with sustained growth is no game. Hasbro (NASDAQ: HAS) is an attractive long-term growth stock for investors to consider. When evaluating stocks, you should prioritize factors like a company's financial strength, overall health, and prospects. In this regard, Hasbro scores highly. For the upcoming quarterly results, Hasbro is projected to report earnings of $0.74 per share, a 51% YoY increase. However, revenues are expected to decline 22.5% to $938.32 million compared to the year-ago period.

Founded in 1923, the Rhode Island-based company has an impressive track record of delivering positive earnings surprises, with an average beat of 17.5%. Its cash flow growth is also robust, with a 37.3% increase expected this year after generating 25.9% growth over the past three to five years.

Do People Still Play Board Games?

According to a recent survey by WordsRated, nearly 75% of U.S. adults play board games at least once every month, and the board games industry was valued at $8 billion in 2023. But Hasbro is not a one-trick pony. Younger players are more enamored with card games—specifically Magic: The Gathering. Hasbro acquired Wizards of The Coast (including this massively popular game) in 1999.

The share price upswing came after a Bank of America analyst upgraded Hasbro's rating, revising price targets upward. The analyst cited accelerating digital growth and a stronger physical toys business as catalysts. Hasbro's Magic franchise is expected to remain stable, bolstered by enthusiasm around upcoming releases like Modern Horizons 3.

Looking ahead to 2025, analysts anticipate continued momentum for Hasbro. Key drivers include full-year royalties from the mobile app game Monopoly Go!, potential growth in consumer products, and a promising theatrical content pipeline. Television and film adaptations based on Hasbro brands include Dungeons & Dragons, G.I. Joe, and Transformers.

What The Analysts Are Saying

Analysts have bullish expectations for Hasbro's earnings and revenue growth in the coming year. Consensus estimates project the company's bottom line will surge 45.8% year-over-year in 2024, while its top line is anticipated to grow 17.2%. Over the past 60 days, eight analysts have revised their fiscal 2024 earnings forecasts higher for Hasbro, and the stock currently has a Strong Buy rating based on 11 analyst recommendations that include Goldman Sachs, Zacks Research, and Morgan Stanley.

Hasbro (HAS) shares surged 6% higher in Friday’s trading session, bucking the stock's 2.5% decline over the prior four weeks. The rally was fueled by an impressive trading volume, indicating heightened investor interest. By Tuesday, enthusiasm had cooled a little, and HAS is now trading at $60.82.

The bottom line: Hasbro is a compelling growth investment opportunity backed by strong fundamentals, attractive growth prospects, and positive analyst sentiment.

Neither Julie Stoller nor Stocks.News have positions in this company.