Hasbro shares hold ground against peers as Wall Street maintains bullish stance
The toy and game maker has outperformed the State Street Consumer Discretionary Select Sector SPDR ETF and rival Mattel over the past year, even as it grapples with rising input costs and slowing segment growth.
Hasbro has delivered a 18.4 per cent return over the past 52 weeks, significantly outperforming the State Street Consumer Discretionary Select Sector SPDR ETF, which gained 6.3 per cent over the same period. The Pawtucket, Rhode Island-based company has also surpassed rival Mattel, whose shares have fallen 27.5 per cent over the year and 30.1 per cent year-to-date. Despite this relative strength, Hasbro’s stock has retreated 21.8 per cent from its 52-week high of $106.98 and has traded below its 50-day moving average since July last year.
Investor sentiment has been tempered by a combination of macroeconomic uncertainty, tariff-related risks, and the fallout from a recent cyber breach. These headwinds contributed to an 8.8 per cent drop in shares on May 20, following the release of first-quarter 2026 earnings. While the company reported revenue of $1 billion and adjusted earnings per share of $1.47, beating analyst expectations, the market reaction was negative due to forward-looking guidance.
Management warned of approximately $30 million in additional costs expected in the second half of 2025. These costs are driven by higher oil prices affecting freight, resin, and packaging. Furthermore, executives indicated that growth in its key Wizards of the Coast and Digital Gaming segment is expected to slow in the fourth quarter, a notable contrast to the 86 per cent surge recorded in the year-ago period.
Despite the recent pullback, Hasbro remains up nearly 2 per cent year-to-date, outperforming the XLY ETF, which has declined 4.6 per cent over the same timeframe. The stock has also fallen 10.1 per cent over the past three months, lagging behind the XLY’s 3.4 per cent rise during that shorter window. The company’s market capitalisation stands at $11.9 billion, firmly placing it in the large-cap category.
Wall Street analysts remain optimistic about the stock’s prospects. Based on coverage from 16 analysts, Hasbro holds a consensus "Strong Buy" rating. The mean price target is set at $113.40, implying a potential upside of 34.4 per cent from current trading levels. This bullish outlook persists despite the near-term pressures from inflationary costs and segment-specific growth deceleration.
