(C) Reuters. Will Mattel Continue to Rally in 2021?
The price of shares of Mattel (NASDAQ:MAT), a children’s entertainment company, has surged significantly over the past year, underpinned by strong demand for the company’s premium toy brands and robust revenue growth. But as the company continues to invest in products that are increasingly popular with children, will the company be able to sustain its momentum? Read on.Toy manufacturer Mattel, Inc.’s (MAT) shares have rallied 128.5% over the past year, driven by a major upswing in its topline performance and its diverse product offerings.
With children continuing to spend more time at home in response to the COVID-19 pandemic, the company’s premium brands, such as Hot Wheels and Barbie, are expected to benefit from higher demand.
So far this year, the stock has gained 17.3% to close yesterday’s trading session at $20.47. As MAT continues to strategically invest in brands that are likely to retain their popularity among children, we think it is well positioned to grow its sales further in the near term. In fact, its new “Optimizing for Growth” initiative for optimizing operations, reducing cost, and driving greater productivity should enable it to drive growth and substantially increase shareholder value.
Will Mattel Continue to Rally in 2021?
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