This week’s Stock of the Week has a handle on the latest trends and knows how to profit from them.
Hasbro Inc. (HAS) is showing how a major traditional toy company can preserve its core products, become a valued partner for other firms and move intelligently into digital products.
In addition to iconic brands such as Monopoly and My Little Pony, Hasbro has proven itself an excellent steward for companies such as Disney, with which it partners for Disney Princesses, Frozen, Star Wars and other product lines. Hasbro treats the brands with respect and knows how to drive strong sales for them. It has been expanding into digital gaming and producing movies and television shows, leveraging its wide stable of brands.
Hasbro also is doing well in Europe, the Asia/Pacific region, and Latin and South America. Its biggest challenge is the decline of bricks-and-mortar retail spaces where people can see, touch and try out toys—but it is working to strengthen existing distribution channels. Revenue of $5 billion in 2016 will likely be $5.4 billion for 2017 and $5.5 billion in 2018, and the dividend of $2.28/share/yr., recently yielding 2.5%, appears secure.
Fiscal year: December. Earnings per share: 2018 est./$5.23…2017 est./$4.99…2016/$4.34.
Charles L. Travers is co-portfolio manager of the $261 million Motley Fool Great America Fund (TMFGX), Alexandria, Virginia. FoolFunds.com