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Mattel (MAT) Dips More Than Broader Markets: What You Should Know

·3 min read

Mattel (MAT) closed at $22.59 in the latest trading session, marking a -1.22% move from the prior day. This move lagged the S&P 500's daily loss of 0.67%. Meanwhile, the Dow lost 0.57%, and the Nasdaq, a tech-heavy index, lost 0.13%.

Prior to today's trading, shares of the toy maker had lost 1.42% over the past month. This has lagged the Consumer Discretionary sector's gain of 1.02% and the S&P 500's gain of 3.65% in that time.

Investors will be hoping for strength from Mattel as it approaches its next earnings release. On that day, Mattel is projected to report earnings of $0.74 per share, which would represent a year-over-year decline of 11.9%. Our most recent consensus estimate is calling for quarterly revenue of $1.76 billion, up 0.01% from the year-ago period.

MAT's full-year Zacks Consensus Estimates are calling for earnings of $1.48 per share and revenue of $5.83 billion. These results would represent year-over-year changes of +13.85% and +6.73%, respectively.

Investors should also note any recent changes to analyst estimates for Mattel. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.32% higher within the past month. Mattel is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Mattel is holding a Forward P/E ratio of 15.49. For comparison, its industry has an average Forward P/E of 15.77, which means Mattel is trading at a discount to the group.

Investors should also note that MAT has a PEG ratio of 0.89 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Toys - Games - Hobbies stocks are, on average, holding a PEG ratio of 1.9 based on yesterday's closing prices.

The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.

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Mattel, Inc. (MAT) : Free Stock Analysis Report
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