Toy companies have been around for centuries and they’re not going away anytime soon. Despite the popularity of electronic toys, the traditional toy market remains resilient. Investors might want to get into this market by buying toy company stocks, but they need to do their homework to find the best toy stocks.
The toy sector relies heavily on Chinese supply chains, so many toy company stocks suffered as a result of the trade war this year. However, with a phase-one deal now in place, these companies could be ready to rebound in 2020.
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Toy Company Stocks to Buy
Mattel Inc. (MAT)
Mattel remains one of the largest toy manufacturers in the world. The company, which is based in El Segundo, California, has seen its share price go up by 44% year-to-date. With the market still performing well, Mattel’s stock price could surge higher over the coming months.
Mattel performed excellently during the last quarter, reporting a 3% increase in net sales. The total net sales for the third quarter was $1.4 billion, while the gross sales stood at $1.6 billion. The reported EPS was $0.20, which is higher than the $0.02 recorded in the same quarter of 2018.
Hasbro, Inc. (HAS)
Hasbro is another American multinational toy company that generates billions of dollars in revenue annually. The company is based in Rhode Island and operates subsidiaries such as Wizards of the Coast, E1 Entertainment, Playskool, and more.
The shares of Hasbro are up by 28% since the start of 2019, making it one of the best performers in the sector. It could continue its bull run if the market maintains its current trend.
Hasbro recently took over Entertainment One PLC, a UK-based company in a deal worth £3.3bn. However, the Competition and Markets Authority (CMA) is currently reviewing the acquisition as it believes the move could substantially reduce competition. The deal is expected to grow through and could represent a big win for Hasbro.
JAKKS Pacific, Inc. (JAKK)
Jakks Pacific is a company popular for designing and marketing toys and consumer products. The shares of Jakks is down by 100% but could be a great buying opportunity at the moment. Share prices declined in recent quarters, but they could turn around now that a preliminary trade deal is in place.
Last month, Jakks appointed John Kimble as Executive Vice President and Chief Financial Officer of the company. Mr. Kimble is tasked with overseeing the financial aspects of Jakks. The managerial change could see the company turn things around in the coming year.
Funko Inc. (FNKO)
Funko is a Washington-based company that manufactures licensed pop culture toys, plush, bobbleheads, action figures, and a few electronic items. The shares of Funko are up by over 10% since the start of the year and could head higher by next year.
Funko recorded notable revenue figures in the third quarter of 2019. The net sales were up by 26% from the same quarter of last year to $223.3 million. The earnings per share of the company also went up to $0.25. If the company keeps posting solid financials, then the outlook for 2020 is bright.
Polaris Industries Inc. (Pll)
Polaris Industries Inc. manufactures motorcycles, snowmobiles, ATV, and neighborhood electric vehicles. The shares of the Minnesota-based company is up by 26%, placing it amongst the top performers in its sector. It could head higher in 2020 as the US stock market continues to perform well.
Polaris Industries began trading ex-dividend late last month. Its cash dividend payment of $0.61 per share is set to be paid on Monday, December 16. Investors who bought the shares before the ex-dividend date will receive the cash dividend payment.
More Toy Company Stocks You Could Buy Now
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