We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Mattel (MAT) Up 7% YTD: Can It Outrun Its Peers in 2024?
Read MoreHide Full Article
Shares of Mattel, Inc. (MAT - Free Report) have not performed well in 2023. So far this year, the stock has gained 6.8% compared with the industry’s growth of 17.3%. The underperformance can be primarily attributed to higher costs and industry woes.
During the third quarter of 2023, Mattel witnessed an unfavorable fixed cost absorption due to significantly lower production volumes and other supply-chain costs. The cost of sales also increased 3.5% to $940.9 million compared with a year ago.
However, the Zacks Rank #3 (Hold) company’s earnings and sales in 2024 are likely to witness growth of 11.6% and 2.5%, year over year, respectively.
Let’s delve deeper.
Growth Drivers
Given a strong product lineup, which includes core brands, licensed brands and lucrative product associations, Mattel remains well-positioned for growth. Owing to its popularity among young boys and girls, the company’s premier brand, Hot Wheels, has been the category leader in multiple product segments for several years.
Meanwhile, it has been undertaking efforts on the digital front and focusing on better execution of marketing and promotional initiatives. In fact, MAT has formed a brand development framework to unlock the scale and profitability of its brands and modernize them for the digital world. Management continues to focus on creating innovative products and experiences that inspire, entertain and develop children.
Image Source: Zacks Investment Research
MAT is likely to benefit from robust performance in North America. During the third quarter, North America’s gross billings increased 10% (as reported and at constant currency) year over year. The notable uptrend was backed by solid performance in Dolls (including Barbie and Disney Princess, and Disney Frozen) and Vehicles (Hot Wheels). Net sales in the North America segment rose 10% year over year on a reported basis and at cc.
Mattel continues to make progress toward capturing the full value of its IP and transform itself into a high-performing toy company. To this end, the company is leveraging its resources to relaunch its catalog IP, including Masters of the Universe, Matchbox and Monster High. It is optimistic in this regard owing to its upside potential and built-in fan base. Moreover, it is strengthening its partnership with major entertainment companies, including Microsoft, Nickelodeon, Nintendo, Universal, Warner Bros and WWE.
Royal Caribbean Cruises Ltd. (RCL - Free Report) currently sports a Zacks Rank #1 (Strong Buy). RCL has a trailing four-quarter earnings surprise of 28.3% on average. Shares of RCL have surged 138% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates a rise of 57.7% and 187.9%, respectively, from the year-ago levels.
Live Nation Entertainment, Inc. (LYV - Free Report) flaunts a Zacks Rank #1 at present. It has a trailing four-quarter earnings surprise of 37.5% on average. Shares of LYV have gained 36% in the past year.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS suggests a jump of 29.5% and 132.8%, respectively, from the prior-year numbers.
JAKKS Pacific, Inc. (JAKK - Free Report) currently sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 61.8% on average. Shares of JAKK have climbed 121.4% in the past year.
The Zacks Consensus Estimate for JAKK’s 2024 sales implies an improvement of 3.6% from the year-earlier figures.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Mattel (MAT) Up 7% YTD: Can It Outrun Its Peers in 2024?
Shares of Mattel, Inc. (MAT - Free Report) have not performed well in 2023. So far this year, the stock has gained 6.8% compared with the industry’s growth of 17.3%. The underperformance can be primarily attributed to higher costs and industry woes.
During the third quarter of 2023, Mattel witnessed an unfavorable fixed cost absorption due to significantly lower production volumes and other supply-chain costs. The cost of sales also increased 3.5% to $940.9 million compared with a year ago.
However, the Zacks Rank #3 (Hold) company’s earnings and sales in 2024 are likely to witness growth of 11.6% and 2.5%, year over year, respectively.
Let’s delve deeper.
Growth Drivers
Given a strong product lineup, which includes core brands, licensed brands and lucrative product associations, Mattel remains well-positioned for growth. Owing to its popularity among young boys and girls, the company’s premier brand, Hot Wheels, has been the category leader in multiple product segments for several years.
Meanwhile, it has been undertaking efforts on the digital front and focusing on better execution of marketing and promotional initiatives. In fact, MAT has formed a brand development framework to unlock the scale and profitability of its brands and modernize them for the digital world. Management continues to focus on creating innovative products and experiences that inspire, entertain and develop children.
Image Source: Zacks Investment Research
MAT is likely to benefit from robust performance in North America. During the third quarter, North America’s gross billings increased 10% (as reported and at constant currency) year over year. The notable uptrend was backed by solid performance in Dolls (including Barbie and Disney Princess, and Disney Frozen) and Vehicles (Hot Wheels). Net sales in the North America segment rose 10% year over year on a reported basis and at cc.
Mattel continues to make progress toward capturing the full value of its IP and transform itself into a high-performing toy company. To this end, the company is leveraging its resources to relaunch its catalog IP, including Masters of the Universe, Matchbox and Monster High. It is optimistic in this regard owing to its upside potential and built-in fan base. Moreover, it is strengthening its partnership with major entertainment companies, including Microsoft, Nickelodeon, Nintendo, Universal, Warner Bros and WWE.
Key Picks
Some better-ranked stocks in the Zacks Consumer Discretionary sector are:
Royal Caribbean Cruises Ltd. (RCL - Free Report) currently sports a Zacks Rank #1 (Strong Buy). RCL has a trailing four-quarter earnings surprise of 28.3% on average. Shares of RCL have surged 138% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RCL’s 2023 sales and EPS indicates a rise of 57.7% and 187.9%, respectively, from the year-ago levels.
Live Nation Entertainment, Inc. (LYV - Free Report) flaunts a Zacks Rank #1 at present. It has a trailing four-quarter earnings surprise of 37.5% on average. Shares of LYV have gained 36% in the past year.
The Zacks Consensus Estimate for LYV’s 2023 sales and EPS suggests a jump of 29.5% and 132.8%, respectively, from the prior-year numbers.
JAKKS Pacific, Inc. (JAKK - Free Report) currently sports a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 61.8% on average. Shares of JAKK have climbed 121.4% in the past year.
The Zacks Consensus Estimate for JAKK’s 2024 sales implies an improvement of 3.6% from the year-earlier figures.