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JAKKS Pacific - AI Stock Analysis

Analysis generated July 28, 2024

JAKKS Pacific is a leading designer, manufacturer, and marketer of toys and consumer products. The company's portfolio includes a wide range of products from action figures and dolls to outdoor toys and seasonal products. With licenses for some of the most popular entertainment properties, JAKKS Pacific has established a solid footprint in the toy industry. However, like many businesses, JAKKS Pacific has faced various challenges, including shifting consumer preferences and economic headwinds.

Fundamental Analysis

The revenue for the last quarter was $90 million, representing a decrease of 29.87% compared to the previous quarter. This is concerning as it indicates a significant drop in sales within a short period. Additionally, when compared to the same quarter last year, there is a decrease of 13.94%. Such declines suggest potential difficulties in maintaining or growing market share.

Net income for the last quarter was $15 million, a decrease of 33.47% from the previous quarter. This decline, when juxtaposed with the same quarter of last year—which showed a staggering decrease of 173.01%—raises alarms about the company's profitability and ability to convert sales into profits.

EBITDA for the last quarter was $21 million. This represents a 33.68% decrease compared to the previous quarter and a concerning 484.88% drop compared to the same quarter last year. EBITDA is a critical measure of a company's operational profitability, and such a sharp decline points to issues in operational efficiency.

One bright spot is the current P/E ratio of 7.54. A P/E ratio this low can indicate undervaluation, suggesting that the stock might be underpriced relative to its earnings potential. This tends to be a bullish indicator as it could attract value investors.

Technical Analysis

Today's stock price is $21.04, reflecting an impressive increase of 17.48% compared to a month ago. Over a longer period, the stock has increased by 13.18% from a year ago. Both trends suggest positive momentum in the stock price and a bullish pattern.

The current Simple Moving Average (SMA) for 10 days is 19.83, an uptick from the previous SMA10 of 19.63. This upward shift in the moving average indicates a favorable trend in stock price movement.

Relative Strength Index (RSI) stands at 53.6, which falls in a neutral range. RSI levels between 30 and 70 commonly indicate that a stock is neither overbought nor oversold, suggesting balanced market sentiment.

Alternative Data Analysis

Examining job postings and employee sentiment, JAKKS Pacific has 11 open positions, a rise of 38% over the last couple of months. Such an increase implies that the company is in expansion mode, generally a positive indicator of growth.

Customer engagement data also provide bullish signals. The company's webpage saw approximately 51,000 visitors, up by 31% over recent months, indicating higher interest, which could translate to increased customer acquisition.

On social media, JAKKS Pacific has 54,000 followers on Instagram—a growth of 3% recently—demonstrating a rising interest. On Twitter, the company has 23,000 followers, with no significant changes, indicating stability. Additionally, AltIndex's AI score assigns JAKKS Pacific a score of 64, marking it as a buy signal based on a mix of fundamental, technical, and alternative data analyses.

Conclusion and Recommendation

Based on the collected data, JAKKS Pacific presents a complex yet intriguing investment opportunity. Despite worrying declines in revenue, net income, and EBITDA, the stock's low P/E ratio of 7.54 suggests it might be undervalued. Technical analyses reveal a bullish trend, while alternative data indicate positive signals in job postings, website traffic, and social media engagement. Coupled with an AI score of 64, these elements collectively point towards a favorable outlook for the stock. Thus, a cautious 'Buy' recommendation is warranted, emphasizing close monitoring of the company's next quarterly results for further insights.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.