Mattel (NASDAQ:MAT) closed at $10.06 in the latest trading session, marking a -1.57% move from the prior day. This move lagged the S&P 500's daily gain of 4.94%. Meanwhile, the Dow gained 4.89%, and the Nasdaq, a tech-heavy index, added 4.95%.
Coming into today, shares of the toy maker had lost 28.43% in the past month. In that same time, the Consumer Discretionary sector lost 20.31%, while the S&P 500 lost 17.66%.
Wall Street will be looking for positivity from MAT as it approaches its next earnings report date. The company is expected to report EPS of -$0.43, up 2.27% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $658.48 million, down 4.46% from the year-ago period.
MAT's full-year Zacks Consensus Estimates are calling for earnings of $0.06 per share and revenue of $4.57 billion. These results would represent year-over-year changes of +120% and +1.53%, respectively.
It is also important to note the recent changes to analyst estimates for MAT. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 194.12% higher. MAT is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, MAT is currently trading at a Forward P/E ratio of 159.69. This represents a premium compared to its industry's average Forward P/E of 23.17.
Meanwhile, MAT's PEG ratio is currently 15.97. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Toys - Games - Hobbies stocks are, on average, holding a PEG ratio of 1.77 based on yesterday's closing prices.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 84, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Mattel, Inc. (MAT): Free Stock Analysis Report
Original post