Is It Time To Consider Buying Hasbro, Inc. (NASDAQ:HAS)?
Today we’re going to take a look at the well-established Hasbro, Inc. (NASDAQ:HAS). The company’s stock received a lot of attention from a substantial price movement on the NasdaqGS over the last few months, increasing to $105.69 at one point, and dropping to the lows of $77.9. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Hasbro’s current trading price of $80.79 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Hasbro’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for Hasbro
What’s the opportunity in Hasbro?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 10.88% above my intrinsic value, which means if you buy Hasbro today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $72.87, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, Hasbro has a low beta, which suggests its share price is less volatile than the wider market.
Can we expect growth from Hasbro?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to more than double over the next couple of years, the future seems bright for Hasbro. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? HAS’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping an eye on HAS, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Hasbro. You can find everything you need to know about Hasbro in the latest infographic research report. If you are no longer interested in Hasbro, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
