Zacks Industry Outlook Highlights Hasbro and Mattel

For Immediate ReleaseChicago, IL – December 8, 2025 – Today, Zacks Equity Research discusses Hasbro, Inc. HAS and Mattel, Inc. MAT.Industry: Toys & GamesLink: https://www.zacks.com/commentary/2800066/2-toys-games-stocks-to-watch-from-a-challenging-industryThe Zacks Toys - Games - Hobbies industry is hurt by elevated production and logistics costs, as well as shifting consumer spending. However, strong franchise and licensing partnerships, robust e-commerce and omnichannel sales, and consistent innovation in product categories bode well.The robust demand for smart toys, STEM (science, technology, engineering and math) toys, sports toys, and fashion dolls and accessories bodes well. Industry participants have been focusing on the better execution of marketing and promotional initiatives to drive growth. Stocks like Hasbro, Inc. and Mattel, Inc. are likely to gain from these trends.Industry DescriptionThe Zacks Toys - Games - Hobbies industry comprises companies that design, manufacture and sell various games and toys. While traditional toymakers primarily focus on marketing and selling action figures, accessories, dolls, youth electronics, and arts and crafts, other industry players develop and market content and services on video game consoles, personal computers and mobiles.Some industry participants offer video game platforms, playing cards, Karuta and other products, as well as handheld and home console hardware systems and related software. Some companies develop and operate retail and online military simulation games, and offer both multi and single-player games.4 Trends Shaping the Future of Zacks Toys - Games - Hobbies IndustryPersistent Cost Inflation and Supply Chain Pressures: The Toys & Games industry continues to grapple with elevated production and logistics costs, which have not fully normalized even after the peak pandemic disruptions. Higher input prices for plastics, resins, paper packaging and electronics components have squeezed manufacturers’ margins. Additionally, freight rates, though lower than crisis-era highs, remain volatile, especially for companies relying heavily on Asian sourcing. Many toy makers also face unpredictable tariff environments, adding another layer of cost uncertainty.These pressures make it harder for companies to maintain competitive pricing without sacrificing profitability, forcing some to scale back assortment breadth or delay new product launches. Retailers are also demanding tighter cost controls and faster turnaround times, amplifying the strain across the supply chain.Shifting Consumer Spending and Weakness in Discretionary Categories: With inflation affecting household budgets, consumers are prioritizing essentials, leaving less room for discretionary purchases like toys, board games and collectibles. Middle-income families, historically the backbone of toy spending, are cutting back or delaying purchases until promotional periods. This has contributed to softer traffic and reduced full-price sell-through at major retailers.At the same time, competition from digital entertainment, such as mobile gaming, streaming services and social platforms, continues to divert attention and wallet share away from traditional toys. The result is a more challenging demand environment where brands must work harder and spend more on marketing and innovation to capture consumer interest, often with diminishing returns.STEM Toys Gaining Popularity: The increasing demand for educational experiences outside traditional classrooms is a significant factor driving market growth. Parents are increasingly looking for toys that promote problem-solving, creativity and critical thinking in their children. STEM toys, in particular, are gaining popularity due to their ability to spark curiosity and develop practical skills, making them a top choice for many families.Factors such as heightened interest in coding and robotics toys have significantly shaped the market landscape. Industry players are capitalizing on new distribution methods, developing digital-play components, exploring ventures with other industries and focusing on international expansion to drive growth. The industry has enormous growth potential in China and Brazil.Focus on Emerging Markets: Industry participants are focusing on expanding their presence in emerging markets in Eastern Europe, Asia, and Latin and South America. Emerging markets offer greater opportunities for revenue growth than developed markets.Zacks Industry Rank Indicates Dull ProspectsThe Zacks Toys – Games – Hobbies industry is grouped within the broader Zacks Consumer Discretionary Sector.The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects.The Zacks Toys – Games – Hobbies industry currently carries a Zacks Industry Rank #218, which places it in the bottom 10% of 243 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.Before we present a few stocks for investors to consider, let us analyze the industry’s recent stock-market performance and valuation picture.Industry Underperforms the S&P 500The Zacks Toys – Games – Hobbies industry has underperformed the S&P 500 index. The industry has rallied 12% over this period compared with the S&P 500’s rise of 15.1%. In the same time frame, the sector has declined 3.3%.Industry's Current ValuationComparing the industry with the S&P 500 index based on forward 12-month price-to-earnings, which is a commonly used multiple for valuing the industry, we see that the industry is trading at 11.22X, lower than the S&P 500’s 23.53X and the sector’s 19.89X.Over the past five years, the industry traded as high as 25.55X and as low as 10.29X, with the median being 13.64X.2 Zacks Toy Stocks to Keep an Eye OnHasbro: The company is benefiting from the entertainment pipeline, strategic partnerships and new product innovations. Also, its focus on high-margin segments such as Wizards, Licensing and Digital segments bodes well. The company remains focused on cost transformation and operational discipline.Shares of this Zacks Rank #3 (Hold) company have gained 24.1% in the past year. The company’s 2026 earnings are likely to witness a year-over-year increase of 7.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.Mattel: The company is likely to benefit from the Optimizing for Profitable Growth program and strong demand for Hot Wheels. This and initiatives toward capturing the full value of the IPs and transforming itself into a high-performing toy company bode well. Mattel is capitalizing on partner-driven innovation to reinforce its competitive position and unlock incremental revenue streams.Shares of this Zacks Rank #3 company have gained 9.3% in the past year. The company’s 2026 earnings are pegged at $1.74, indicating a year-over-year gain of 10.7%.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>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 Hasbro, Inc. (HAS): Free Stock Analysis Report Mattel, Inc. (MAT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks