Why Mattel (MAT) is a Top Value Stock for the Long-Term
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Mattel (MAT)
Headquartered in El Segundo, CA, Mattel Inc. is the world’s largest manufacturer of toys. The company’s products are sold directly to retailers and wholesalers in most European, Latin American and Asian countries as well as in Australia, Canada and New Zealand through the Mattel Girls & Boys Brands, Fisher-Price Brands, American Girl Brands, and Construction and Arts & Crafts Brands. The products are sold through agents as well as distributors in countries where Mattel has no direct presence.
MAT is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 14.1X for the current fiscal year compared to the Toys - Games - Hobbies industry's P/E of 17.6X. Additionally, MAT has a PEG Ratio of 1.3 and a Price/Cash Flow ratio of 10.3X. Value investors should also note MAT's Price/Sales ratio of 1.2X.
Many value investors pay close attention to a company's earnings as well. For MAT, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $1.37 per share for 2024. Per share MAT boasts an average earnings surprise of 94.6%.
MAT should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Mattel, Inc. (MAT) : Free Stock Analysis Report
