S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
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S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Latest freight railroad layoffs and Wall Street pressure renew concerns about safety and service
Critical asset just had biggest fall on record (Ad)
Dell, NetApp rise; Ginkgo Bioworks, New York Community Bancorp fall, Friday, 3/1/2024
How major US stock indexes fared Friday, 3/1/2024
Critical asset just had biggest fall on record (Ad)
China pledges to increase opportunities for foreign companies as it seeks to boost its economy
Brazil's economy grows 2.9% in Lula's 1st year, beating expectations
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Question of whether Nebraska public money can go to private schools still set for November ballot
A US appeals court ruling could allow mine development on Oak Flat, land sacred to Apaches
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Latest freight railroad layoffs and Wall Street pressure renew concerns about safety and service
Critical asset just had biggest fall on record (Ad)
Dell, NetApp rise; Ginkgo Bioworks, New York Community Bancorp fall, Friday, 3/1/2024
How major US stock indexes fared Friday, 3/1/2024
Critical asset just had biggest fall on record (Ad)
China pledges to increase opportunities for foreign companies as it seeks to boost its economy
Brazil's economy grows 2.9% in Lula's 1st year, beating expectations
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Question of whether Nebraska public money can go to private schools still set for November ballot
A US appeals court ruling could allow mine development on Oak Flat, land sacred to Apaches
S&P 500   5,137.08
DOW   39,087.38
QQQ   445.61
Latest freight railroad layoffs and Wall Street pressure renew concerns about safety and service
Critical asset just had biggest fall on record (Ad)
Dell, NetApp rise; Ginkgo Bioworks, New York Community Bancorp fall, Friday, 3/1/2024
How major US stock indexes fared Friday, 3/1/2024
Critical asset just had biggest fall on record (Ad)
China pledges to increase opportunities for foreign companies as it seeks to boost its economy
Brazil's economy grows 2.9% in Lula's 1st year, beating expectations
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Question of whether Nebraska public money can go to private schools still set for November ballot
A US appeals court ruling could allow mine development on Oak Flat, land sacred to Apaches

The Long Case for Buying Hasbro Stock May Lie in the Metaverse

The Long Case for Buying Hasbro Stock May Lie in the Metaverse

Can HAS stock get a catalyst from the nascent virtual world? 

Hasbro (NASDAQ: HAS) accomplished the coveted double beat when the company reported fourth-quarter earnings on February 7. But so far the market’s reaction has been underwhelming. Investors are listening carefully to forward guidance. In 2022, Hasbro is projecting revenue growth in the low, single-digit range, that’s in-line with analysts’ expectations.  

However, there was one item that seems to be troubling investors. That was the company’s revelation that the current supply chain disruptions meant it took three times longer for products in transit from China to get to retailers. And according to chief financial officer Deborah Thomas Hasbro expects more “challenges with freight costs and input costs for the better part of this year.” 

In response to that challenge, the company will be increasing prices in the second quarter. That's not good news for investors debating what to do with a stock that is a laggard to the broader market.  

For answers, we think you can look to the company’s digital gaming platform. While it’s still in the early stages, it may position Hasbro to be a participant in the blossoming metaverse.  

What Will the Metaverse Be Like? 

I can’t open my email without receiving one or more emails about how to invest in the metaverse. However, when executives were asked about the metaverse late in 2021 many seemed to have their own definition of what the metaverse is, or will be.  


Count Hasbro’s incoming chief executive officer among them. Chris Cocks had this to say about the metaverse, “The first step to be participating in the metaverse, you have to have digital games. I think the metaverse is shorthand for, hey, entertainment is digitizing and entertainment is the Game of Life.” 

The Game of Life as you may be aware is one of Hasbro’s popular board games. And it’s available as a digital download. But the ability to play one of your favorite board games online, even if you can compete against others isn’t the metaverse. But, as Cocks points out, it’s a start. 

Hasbro has gone even further by partnering with Roblox (NYSE:RBLX) to create Roblox-inspired NERF blasters as well as a Roblox version of the company’s Monopoly board game. If you’re planning to compete in the metaverse, Roblox would be a good company to partner with.  

And then there’s the company’s partnership with The Worldwide Asset eXchange (WAX) that is allowing the company to compete in the non-fungible token (NFT) market. The Power Rangers NFT collection is available on the WAX blockchain. Each NFT is redeemable for a physical, limited edition collectible Power Rangers figure.  

Should You Go Long With HAS Stock? 

Hasbro is reporting strong revenue. In fact, the last two quarters have been record quarters. However, the pace of that revenue growth slowed dramatically from the third quarter to the fourth quarter. And the company’s forward guidance suggests that 2022 may bring more of the same. For their part, analysts give HAS stock about a 15% upside from its current price. 

I personally would be saddened by a world that didn’t have families playing board games and interacting in real life (or IRL for those that speak in text). But I also would be hesitant to start a business in 2022 that did not have a strong digital and/or metaverse presence. 

I think Hasbro is developing that. But it’s not completely here yet. However, I give the company high marks for thinking about it. There aren’t many consumer discretionary companies that have a clear idea of what the metaverse will look like for their brands. By taking these initial steps, Hasbro seems to be skating to where the puck is going. That’s an investable position to take. 

And in the meantime, the company does offer a solid dividend that it has increased in each of the last 18 years.  

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Should you invest $1,000 in Hasbro right now?

Before you consider Hasbro, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Hasbro wasn't on the list.

While Hasbro currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Hasbro (HAS)
4.5604 of 5 stars
$50.25-0.1%5.57%-4.69Hold$66.78
Compare These Stocks  Add These Stocks to My Watchlist 

Chris Markoch

About Chris Markoch

  • CTMarkoch@msn.com

Editor & Contributing Author

Retirement, Individual Investing

Experience

Chris Markoch has been an editor & contributing writer for MarketBeat since 2018.

Areas of Expertise

Value investing, retirement stocks, dividend stocks

Education

Bachelor of Arts, The University of Akron

Past Experience

InvestorPlace


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