Buy This Toy Stock In March

Hasbro stock has historically outperformed in March

by Patrick Martin

Published on Mar 2, 2018 at 12:04 PM
Updated on Jun 24, 2020 at 10:16 AM

Hasbro, Inc. (NASDAQ:HAS) stock is sticking close to breakeven today, last seen up fractionally to trade at $94.42. However, the toy stock is pacing for its biggest weekly loss since early November, weighed down by a rough start to the week for rival Mattel (MAT) had a rough start to the week. Nevertheless, it could be time to buy the Hasbro dip, if past is precedent.

According to Schaeffer's Senior Quantitative Analyst Rocky White, Hasbro is one of the best stocks to own in March, looking back 10 years. The toy stock is second on the list, sporting an average return of 5.38%, and is one of only four stocks with a 100% win rate. A move of similar proportions would put the security back near the century level, based on its current perch.

A short squeeze could also push HAS stock higher. Short sellers have been fleeing the scene, with short interest down 18.3% in the last reporting period to 6.25 million shares. This still represents a healthy 5% of Hasbro stock's total available float, and nearly three days of pent-up buying power, at the average pace of trading.

Those wanting to bet on more upside for the toy stock should consider doing so with options, considering HAS stock's Schaeffer's Volatility Index (SVI) of 27% ranks in the 18th annual percentile. In other words, low volatility expectations are being priced into short-term contracts at the moment.


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