The Star Wars Effect on Toys (NASDAQ: HAS)

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Hasbro Inc. ($HAS)

When Disney bought Lucasfilms in 2012 for $4 Billion, fans of the Star Wars franchise expressed concern of where Disney would take the franchise. As a fan, I was a little concerned myself. How much influence would George Lucas have in creating future films? What will happen to the Star Wars universe? As it turns out, we had nothing to worry about. The acquisition has been VERY successful.  Both Star Wars: The Force Awakens and Rogue One surpassed the $1 Billion mark in global box office sales.

The success of both movies has helped Hasbro ($HAS) break new records of their own. This morning’s earnings report showed the full-year net revenue for 2016 surpass $5 Billion. It was the first time in the company’s 94 year history to break $5 Billion in sales for the full year. The stock benefited from the report by closing at a new 52-week high at $94.31. This is a gain of +$11.68 from yesterday’s close or +14%.

Performance

  • 52 Week range:  Low of $68.60 (February 2016) and the High is $96.34 (February 2017)
  • 1 Month performance: +17.6%
  • 1-year performance: +27.3%

Moving Averages

  • 50-day simple moving average (SMA): $82.80
  • 100-day SMA: $81.64
  • 200-day SMA: $81.95

Camtrading’s Opinion

It looks like toys are making a comeback! The 5-year performance of Hasbro has seen a gain of +168%. Last year, Hasbro beat out Mattel to secure the licensing of the Disney Princess collection. The gap up in the stock today is a bullish indicator. The trend is up for Hasbro. The new resistance level is $96, while the support level is $76. As long as the movies continue to perform, Hasbro has a great long-term outlook.

Disclosure: I do not own stock in Hasbro. This article only expresses my opinion and is not a recommendation of the company. I started a new section on my blog where I post a quick analysis on companies. Check out my report on Frontier Communications and Pepsi

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