Earnings Play: Hasbro

How to play Hasbro's 2Q earnings release on Monday morning.

Charts (2)

On Monday, before market, Hasbro (HAS) is expected to release 2Q EPS of $0.20 compared to $0.78 the prior year on revenue of approximately $994.8M vs. $984.5M last year. The company manufactures toys and games, and on its current analyst consensus rating is 12 buys, 6 holds and 0 sells, according to Bloomberg. 

From a technical point of view, on a daily chart, Hasbro's stock price has been trying to hold above a rising support trend line that began to form in late-March. The RSI is currently over 60 and appears to be getting ready for a slight pull back. Price may lose some steam and fall back to its $75.00 support level, right on top of the trend line, where a bounce is likely to occur. If price successfully bounces it could continue upward to retest the $84.00 resistance level. If price can break above the $84.00 level, there is a high probability that price will continue rising and grind toward the $90.00 level. If price fails to find support at the $75.00 level, we could see price fall to the $70.00 level. If price cannot find support at $70.00, then price would likely begin a new-short term downtrend, as price will have broken to the downside of the rising support trend line.    

Source: GAIN Capital, TradingView

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