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Here's Why Mattel (MAT) is a Strong Value Stock

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

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Mattel (MAT)

Headquartered in El Segundo, CA, Mattel Inc. is the world’s largest manufacturer of toys. The company’s products are sold directly to retailers and wholesalers in most European, Latin American and Asian countries as well as in Australia, Canada and New Zealand through the Mattel Girls & Boys Brands, Fisher-Price Brands, American Girl Brands, and Construction and Arts & Crafts Brands. The products are sold through agents as well as distributors in countries where Mattel has no direct presence.

MAT is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 13.4X for the current fiscal year compared to the Toys - Games - Hobbies industry's P/E of 16.7X. Additionally, MAT has a PEG Ratio of 1.2 and a Price/Cash Flow ratio of 10X. Value investors should also note MAT's Price/Sales ratio of 1.2X.

A company's earnings performance is important for value investors as well. For fiscal 2024, six analysts revised their earnings estimate higher in the last 60 days for MAT, while the Zacks Consensus Estimate has increased $0.03 to $1.40 per share. MAT also holds an average earnings surprise of 107.3%.

Investors should take the time to consider MAT for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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Mattel, Inc. (MAT) : Free Stock Analysis Report

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