Latest news with #JAKK
Yahoo
29-05-2025
- Business
- Yahoo
Are Investors Undervaluing JAKKS Pacific (JAKK) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks. Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits. In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment. One stock to keep an eye on is JAKKS Pacific (JAKK). JAKK is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 4.85, which compares to its industry's average of 13.43. JAKK's Forward P/E has been as high as 8.33 and as low as 3.75, with a median of 6.35, all within the past year. Finally, we should also recognize that JAKK has a P/CF ratio of 4.17. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. JAKK's P/CF compares to its industry's average P/CF of 12.35. Over the past 52 weeks, JAKK's P/CF has been as high as 8.68 and as low as 3.53, with a median of 6.76. These are only a few of the key metrics included in JAKKS Pacific's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, JAKK looks like an impressive value stock at the moment. 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 JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
5 Discretionary Stocks to Buy on Solid Rebound in Consumer Confidence
U.S. consumers have regained some of their faith in the nation's economy over the past month, or since the United States and China announced a trade truce and temporarily halted tariffs. Markets have since rebounded sharply and consumers are a lot more confident now. Although trade anxiety persists, the situation has improved a lot from the lows seen in March and early April. This saw consumer confidence rebounding sharply in May. Given this positive sentiment, it would be ideal to invest in consumer discretionary stocks such as Netflix, Inc. NFLX, JAKKS Pacific, Inc. JAKK, Kontoor Brands, Inc. KTB, Fox Corporation FOX and Charter Communications, Inc. CHTR. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Conference Board said on Tuesday that consumer confidence jumped to 98 in May, up 12.3 points from April and sharply above the consensus estimate of a rise to 87. The jump comes after five straight months of decline. Also, the present situation index climbed 4.8 points month over month to 135.9. The expectations index surged to 72.8 in May, up 17.4 points sequentially. Also, 44% of investors now believe that stocks will be higher over the next 12 years, increasing 6.4% from April. The labor market outlook also improved, with 19.2% expecting more job availability in the next six months. The Conference Board said that most of the positive sentiment came after trade tensions between the United States and China eased. Consumers and investors grew concerned about the future of the economy as Trump's sweeping tariffs on the trading partners of the United States escalated trade war fears. However, the Trump administration has since paused tariffs on most countries and has reached deals with some of the trading partners. Consumer sentiment got a further boost on Wednesday after a federal trade court ruled that Trump's tariffs are 'illegal' and blocked them. Wednesday's ruling could further boost consumers' confidence. Also, markets are pricing two 25 basis point rate cuts starting September this year as inflation has been showing signs of cooling. Netflix, Inc. is considered a pioneer in the streaming space. NFLX has been spending aggressively on building its portfolio of original shows. This is helping Netflix sustain its leading position despite the launch of new services like Disney+ and Apple TV+, as well as existing services like Amazon Prime Video. Netflix's expected earnings growth rate for the current year is 27.7%. The Zacks Consensus Estimate for current-year earnings has improved 3% over the past 60 days. NFLX currently carries a Zacks Rank #2. JAKKS Pacific, Inc. is a multi-brand company that has been designing and marketing a broad range of toys and consumer products since 1995. JAKK not only develops its proprietary brands and marks but also uses licensing trademarks to access a far greater range of marks. Moreover, JAKKS Pacific licenses technology developed by unaffiliated inventors and product developers to enhance the design and functionality of its products. JAKKS Pacific'sexpected earnings growth rate for the current year is 12.7%. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the past 60 days. JAKK currently sports a Zacks Rank #1. Kontoor Brands, Inc. is an apparel company. KTB designs, manufactures and distributes products. KTB'sbrand consists of Wrangler, Lee and Rock & Republic. Kontoor Brands Inc. is based in Greensboro. Kontoor Brands' expected earnings growth rate for the current year is 9.6%. The Zacks Consensus Estimate for current-year earnings has improved 2.9% over the past 60 days. KTB currently carries a Zacks Rank #2. Fox Corporation produces and distributes news, sports and entertainment content. FOX's brand includes FOX News, FOX Sports, the FOX Network, the FOX Television Stations and sports cable networks FS1, FS2, Fox Deportes and Big Ten Network. Fox Corporation's expected earnings growth rate for the current year is 32.36%. The Zacks Consensus Estimate for the current-year earnings has improved 2% over the past 60 days. FOX presently carries a Zacks Rank #1. Charter Communications, Inc. is the second-largest cable operator in the United States and a leading broadband communications company providing video, Internet and voice services. CHTR served approximately 30.1 million customers in 41 states through its Spectrum brand as of Dec. 31, 2024. Charter Communications' expected earnings growth rate for the current year is 13.2%. The Zacks Consensus Estimate for the current-year earnings has improved 4.5% over the past 60 days. CHTR presently has a Zacks Rank #2. 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 Netflix, Inc. (NFLX) : Free Stock Analysis Report JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report Charter Communications, Inc. (CHTR) : Free Stock Analysis Report Fox Corporation (FOX) : Free Stock Analysis Report Kontoor Brands, Inc. (KTB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-05-2025
- Business
- Yahoo
JAKKS Pacific, Inc. (JAKK): A Bull Case Theory
We came across a bullish thesis on JAKKS Pacific, Inc. (JAKK) on Substack by Inflexio Research. In this article, we will summarize the bulls' thesis on JAKK. JAKKS Pacific, Inc. (JAKK)'s share was trading at $18.17 as of May 5th. JAKK's trailing and forward P/E were 4.33 and 9.08 respectively according to Yahoo Finance. Copyright: defotoberg / 123RF Stock Photo Jakks Pacific delivered a blowout Q1 2025 performance, far surpassing expectations and reaffirming the strength of its recent transformation. Revenue surged 26% year-over-year to $133.3 million, while gross margins expanded dramatically to 34.4%, up 1,100 basis points. EBITDA turned positive at $0.4 million, a significant improvement from -$17.2 million in the prior year and far ahead of the estimated -$14.2 million. This marks only the second time in 15 years that Jakks has generated positive EBITDA in a first quarter, underscoring the company's operational momentum. The cash balance remains robust at $60 million, or approximately $5.40 per share, and the dividend is intact, now yielding an attractive 5.34%. Despite these impressive financial results, the market's focus quickly shifted to broader macro concerns following retaliatory tariffs on China. With tariff rates on toys now potentially rising to a staggering 145%, the industry faces a disadvantage compared to other consumer goods. This could prompt retailers to allocate shelf space to alternative product categories, though there's speculation that such extreme tariffs are unsustainable and may be reduced in the near term. In the meantime, Jakks is unlikely to be materially impacted by the tariffs, given the seasonal nature of the toy business and the current lull in demand until the September ramp-up. However, if tariffs persist through August, there is a meaningful risk that 2025 becomes a lost year for the company. While Rosen, Jakks' largest shareholder, may offer limited U.S. manufacturing capabilities, these would not be sufficient to offset near-term disruptions. Relocating production to alternative regions would likely take 18–24 months, presenting a timing mismatch that limits immediate solutions. Nonetheless, Jakks' fortress-like balance sheet and a highly favorable three-year setup offer investors a cushion against short-term volatility. The company is well-positioned to ride out tariff noise, and the long-term thesis remains intact. Jakks is clearly executing operationally, and should geopolitical pressures subside, the current stock price could represent an undervalued entry point. JAKKS Pacific, Inc. (JAKK) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held JAKK at the end of the fourth quarter which was 12 in the previous quarter. While we acknowledge the risk and potential of JAKK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than JAKK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
