Toy maker Mattel, like other entertainment companies, has grown sales and profits by expanding into the movies sector. On Thursday, the highly ranked company's stock leapt into the top tier ratings as Mattel stock's Relative Strength (RS) Rating climbed from an already-strong 87 to 92, placing it among the best stocks to watch and buy.
On Monday, Mattel announced that J.J. Abrams' Bad Robot motion picture production company will produce a live-action movie based on Mattel's Hot Wheels toy line.
Mattel Stock Among Top Tier Overall
Top-performing stocks typically have an RS Rating of at least 80, of a best-possible 99, in the early stages of their moves. Mattel is way above that benchmark. Additionally, it's just below a fresh buy point.
Among its other key ratings, Mattel stock has an 86 Composite Rating, putting it in the top 14% of stocks on a group of five key metrics. Additionally, its B Accumulation/Distribution Rating reflects strong buying of Mattel stock by institutional investors. The toy maker's 44 EPS Rating is weak but it's based on earlier earnings reports. Its latest report showed 180% year-over-year growth.
In terms of fundamentals, the company has posted rising revenue and profit growth in each of the last two reports. Last quarter it recorded a 180% increase in EPS to 8 cents per share on a 19% rise in revenue to $1.04 billion. The prior quarter EPS rose 33% on a 10% hike in revenue.
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Meanwhile, Mattel stock is trying to complete a consolidation with a 25.81 buy point. See if it can break out in heavy trade. On Thursday, Mattel was up about 1% just before the close, at 24.67.
Peers In Leisure-Toys Group
Mattel stock earns the No. 2 rank among its peers in the Leisure-Toys/Games/Hobby industry group. Jakks Pacific is the No. 1-ranked stock in the group.
A stock's relative price strength is a key consideration. IBD's proprietary Relative Strength Rating tracks market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price behavior over the trailing 52 weeks compares to all the other stocks in our database.
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