Conclusion, Investment Implications, Strategy
Hasbro, Inc.(HAS) appears to be resuming its late September major uptrend following 5 weeks of sideways investor indecision. A sustained rise above the $94.77 area would help confirm to this and target an additional 14% rise to $138.50 per share. This is an Asbury Momentum trade idea.
Analysis and Rationale
Hasbro, Inc. (HAS), together with its subsidiaries, operates as a play and entertainment company. The company’s U.S. and Canada segment markets and sells action figures, arts and crafts, and creative play products; electronic toys and related electronic interactive products; fashion and other dolls, infant products, play sets, preschool toys, plush products, and sports action blasters and accessories; and vehicles and toy-related specialty products, as well as traditional board games, and trading card and role-playing games primarily in the United States and Canada. Its International segment markets and sells toy and game products primarily in the Europe, the Asia Pacific, and Latin and South American regions. The company’s Entertainment and Licensing segment engages in consumer products licensing, digital gaming, and television and movie entertainment operations. The company sells its products to wholesalers, distributors, chain stores, discount stores, drug stores, mail order houses, catalog stores, department stores, and other traditional retailers, as well as Internet-based e-retailers. Hasbro, Inc. was founded in 1923 and is headquartered in Pawtucket, Rhode Island.
The upper panel of Chart 1 below plots HAS daily since October along with its 200-day moving average, the latter a widely-watched major trend proxy. The lower panel displays a corresponding daily relative performance chart of HAS versus the benchmark S&P 500 (SPX, blue) along with its 21-day moving average (red, our Tactical time period).
The colored highlights in the upper panel show that HAS appears to be resuming its late September major uptrend, as defined by its 200-day MA, following 5 weeks of sideways investor indecision. A sustained rise above the upper boundary of the indecision area, currently at $94.77, would help to confirm this and would target an additional 14% rise to $109.50 per share.
Chart 1
The lower panel shows that HAS is also in the midst of a tentative new trend of monthly relative outperformance versus SPX.
Table 1 below shows that considering the aforementioned upside target and a protective stop placed below the $93.00 area, a long entry price of $96.45 would provide a 1:3.8 risk/reward ratio (risking $1.00 to make $3.80) with an initial risk of 3.6%.
Table 1
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Please consult the table showing our Asbury 6 key market metrics to help determine if this investment is suitable for you.