Credit: Shutterstock photoThe holiday shopping season was off to a fast start Friday, and the early word was that toys were hot. The news liftedHasbro 's ( HAS ) stock to a new all-time high. It rose 1.06 to close at 59.20.
A team of Piper Jaffray analysts hit the road Wednesday evening, Thanksgiving and Black Friday morning, visiting malls, department stores and discounters to gauge the strength of retail shopping. They liked what they saw.
"From our initial observations, we think the toy category was the notable winner," said analyst Stephanie Wissink. "Product was compelling and well merchandized, promotions were slightly less aggressive, and floors were well shopped. This was positive on Hasbro,Mattel ( MAT ) andJakks Pacific ( JAKK )."
IBD's toys and games industry group is near the bottom of the barrel, with a ranking of 183 among 197 groups. Shares of Mattel and Jakks are both depressed and in downtrends, in contrast with Hasbro.
But Hasbro has managed to outperform the S&P 500 over the past year. The company owns popular toy and game brands such as Nerf, My Little Pony and Playskool.
The toymaker has enjoyed slow but steady growth. Its five-year annualized earnings growth rate is 5%, and its Earnings Stability Factor is 5 on a 0 to 99 scale, where low numbers correspond to stable earnings growth.
Analysts are forecasting a 14% EPS growth this year and and 12% in 2015.
EPS growth the past three quarters has been positive. In the most recent report, earnings rose 11%, and revenue was up 7%. In the next report, which will cover the critical holiday shopping season, analysts are forecasting a 15% earnings increase.
Hasbro pays a regular quarterly dividend of 43 cents a share, which works out to an annualized yield of 3%.
The dividend is fast-growing. In 2010, it was just 10 cents. The three- to five-year annualized dividend growth rate is 21%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
