Jakks Pacific (JAKK) closed at $23.37 in the latest trading session, marking a -1.18% move from the prior day. This move lagged the S&P 500's daily loss of 0.72%. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 0.27%.
Coming into today, shares of the toymaker had gained 0.21% in the past month. In that same time, the Consumer Discretionary sector lost 9.31%, while the S&P 500 lost 9.06%.
Jakks Pacific will be looking to display strength as it nears its next earnings release. In that report, analysts expect Jakks Pacific to post earnings of $3.81 per share. This would mark year-over-year growth of 1.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $287.21 million, up 21.21% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.87 per share and revenue of $732.7 million, which would represent changes of +88.03% and +17.96%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Jakks Pacific. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Jakks Pacific is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, Jakks Pacific is currently trading at a Forward P/E ratio of 4.86. For comparison, its industry has an average Forward P/E of 15.8, which means Jakks Pacific is trading at a discount to the group.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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