From Nasdaq:

The Toys – Games – Hobbies industry is experiencing growth due to the demand for smart toys, STEM toys and sports toys. Despite challenges like high costs, industry players like Electronic Arts, Mattel and Take-Two Interactive Software are expected to benefit from these trends. The industry is projected to grow further, especially in emerging markets.

The demand for STEM toys is on the rise, especially in the Asia Pacific region, with countries like India and Singapore witnessing growing interest. The industry has potential for growth in China and Brazil, where there is a large population of young children. Emerging markets, including Eastern Europe and Asia, present significant revenue growth opportunities.

However, the industry is facing challenges due to cost inflation, rising raw materials prices and supply chain disruptions. Future growth is dependent on factors like product launches and a shift toward more technology-driven toys. Despite these concerns, the industry has been promoting new distribution methods and international expansion to drive growth.

The Zacks Toys – Games – Hobbies industry is ranked #46 within the broader Zacks Consumer Discretionary Sector, indicating bright near-term prospects. However, when compared to the S&P 500, the industry has underperformed, with the S&P 500 experiencing higher growth and performance in the past year.

The industry is trading at 23.01X, higher than the S&P 500, but lower than the sector. While the industry has underperformed in the stock market compared to the S&P 500, promising stocks in this industry include Electronic Arts, Mattel, and Take-Two Interactive Software. All of these stocks have shown growth potential despite certain challenges.



Read more: 3 Toys & Games Industry Stocks to Watch in a Promising Industry