When Should You Buy Hasbro, Inc. (NASDAQ:HAS)?

Let's talk about the popular Hasbro, Inc. (NASDAQ:HAS). The company's shares received a lot of attention from a substantial price increase on the NASDAQGS over the last few months. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Today I will analyse the most recent data on Hasbro’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for Hasbro

Is Hasbro still cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 3.9% below my intrinsic value, which means if you buy Hasbro today, you’d be paying a fair price for it. And if you believe that the stock is really worth $82.34, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, Hasbro’s low beta implies that the stock is less volatile than the wider market.

Can we expect growth from Hasbro?

earnings-and-revenue-growth

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Hasbro’s earnings over the next few years are expected to increase by 84%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

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 conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs 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.

If you'd like to know more about Hasbro as a business, it's important to be aware of any risks it's facing. Be aware that Hasbro is showing 3 warning signs in our investment analysis and 1 of those is a bit unpleasant...

If you are no longer interested in Hasbro, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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