The stock price of California-based toymaker JAKKS Pacific, Inc. (JAKK) nudged up a mere 1.7% in the day’s trading session on Tuesday, as the company announced a multi-year license renewal with Saban Brands extending through 2017. Under the agreement, JAKKS Pacific will continue producing the popular Power Rangers branded Halloween costumes and accessories for kids and adults.
Additionally, JAKKS Pacific will introduce a toy-based Hero Portal TV Games, featuring Power Rangers, as well as other popular series such as Teenage Mutant Ninja Turtles and DC super heroes. Both the products will hit retail stores across the U.S. in September this year.
The Halloween costume and accessories unit, Disguise, Inc, has historically been a solid performer for JAKKS Pacific. With the extension of the deal, the company will be able to cash in on the popularity that superhero costumes generally enjoy during the Halloween season.
JAKKS Pacific has regularly brought in novelty in its products to cope with the changing play pattern of children and boost demand. The company believes that the introduction of trendy technology-based products will help it to overcome the current challenging retail environment. We believe the launch of the Hero Portal console system, the company is seeking to tap the increasingly lucrative technology-based market.
JAKKS Pacific currently carries a Zacks Rank #2 (Buy). Other stocks that can be considered in the same sector include Glu Mobile, Inc. (GLUU) and Take-Two Interactive Software Inc. (TTWO), both carrying the same Zacks Rank as JAKKS Pacific. However, in the broader consumer discretionary sector, a better-performing stock is Wynn Resorts Ltd. (WYNN), which sports a Zacks Rank #1 (Strong Buy).
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