In the latest trading session, Mattel (MAT) closed at $8.54, marking a -1.95% move from the previous day. This change was narrower than the S&P 500's 5.18% loss on the day. Meanwhile, the Dow lost 6.3%, and the Nasdaq, a tech-heavy index, lost 4.7%.
Heading into today, shares of the toy maker had lost 34.49% over the past month, lagging the Consumer Discretionary sector's loss of 32.38% and the S&P 500's loss of 24.68% in that time.
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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
Any recent changes to analyst estimates for MAT should also be noted by investors. These revisions help to show the ever-changing nature of near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 6.67% higher within the past month. MAT currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, MAT currently has a Forward P/E ratio of 136.09. This valuation marks a premium compared to its industry's average Forward P/E of 20.65.
Also, we should mention that MAT has a PEG ratio of 13.61. 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. The Toys - Games - Hobbies was holding an average PEG ratio of 1.7 at yesterday's closing price.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 21% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Mattel, Inc. (MAT) : Free Stock Analysis Report
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