4 'Toy Story' Stocks Tied to Golden Globe Winner

Editor's note: As part of our partnership with PBS's Nightly Business Report, TheStreet's Editor-in-Chief Glenn Hall joined NBR to discuss stocks that benefit from the runaway success of movie franchises like Toy Story 3. (Watch video and see transcript)

NEW YORK (TheStreet) -- Toy Story 3, the highest-grossing movie of 2010, claimed the 2011 Golden Globe for Best Animated Feature Film -- another feather in the cap for Disney and more fuel for other stocks exploiting the marketing and merchandising of Woody, Buzz and their animated pals.

The award, which brought voice stars Tom Hanks and Tim Allen to the red carpet over the weekend, should give a little lift to DVD sales and rentals for Toy Story 3, which has topped the charts for both DVD and Blu-Ray sales, according to Hollywood Reporter.

Golden Globes can greenlight sales, with Disney's Up seeing sales bump to nearly $1.4 million the week after winning last year's Golden Globe for Best Animated Feature Film compared with $1.3 million the week before the ceremony, according to Nash Information Services.
Word on the Street

The Toy Story franchise keeps managing to stay in the spotlight. Just last week, Toy Story 3 won the "Golden Tomato" award for being the best-reviewed film of the year, according to the Rotten Tomatoes Web site. And the Disney/Pixar crew have launched a not-so-subtle lobbying campaign for the movie to win the Academy Award for Best Picture.

With all the ongoing publicity and revenue potential, the Toy Story connection is worth noting for investors and the following stocks offer a solid link to the animated franchise.


Disney ( DIS) is an obvious winner since Toy Story 3 raked in $1.06 billion in theaters in 2010, according to Box Office Mojo.

Back in November, CEO Bob Iger credited Toy Story 3 as key to "the financial and strategic success" of his company in 2010 and most of the profit from the studio division in the fourth quarter.

Disney shares are up 4.75% this year after ending 2010 with a 16% gain. The stock is considered a "buy" with a "B" grade from TheStreet Ratings.

Other Analyst Ratings

The stock has 12 "buy" ratings, 15 "hold" ratings and one "strong sell", according to Zacks.

Earnings Estimates

The company is expected to post full-year earnings per share of $2.43, up from $2.07 in 2009.

Stock Ratio

The company has a price-earnings ratio of 19.35.

Toy Story also gave a lift to Mattel ( MAT), which offers more than 60 Toy Story themed products -- including the Evil Dr. Porkchop Spaceship and the Buzz Lightyear Deluxe Action Wing Pack for $49.99 each.

In October, Mattel cited Toy Story 3 among the reasons for a rebound in sales this year. Mattel shares ended 2010 with a 27% gain and are down 6% so far in 2011. The stock is considered a "buy" with an "B" grade from TheStreet Ratings.

Other Analyst Ratings

The stock has 11 "buy" ratings, three "hold" ratings and no analysts saying to "sell", according to Zacks. Last week, Mattel was rated a new "Buy" with a $28 price target at Jefferies, which said the company is managing costs and is a market leader for younger children.

Earnings Estimates

The company is expected to post full-year earnings per share of $1.84, up from $1.45 in 2009.

Stock Ratio

The company has a price-earnings ratio of 12.81.

Hasbro's ( HAS) link to Toy Story 3 comes via Mr. Potato Head, one of the Toy Story gang.

The attention captured by the spudmeister along with other games based on Toy Story 3 helped drive third-quarter growth, CEO Brian Goldner said on Hasbro's third-quarter earnings conference call in October. Hasbro profit topped expectations in the quarter and the company's shares gained 47% last year. The stock is 6% so far in 2011, however, after the company said last week that holiday sales were weaker than expected and it now expects a slight dip in fourth-quarter sales and only a modest increase in 2010 EPS.

Hasbro is considered a "buy" with an "A" grade from TheStreet Ratings.

Other Analyst Ratings

The stock has 10 "buy" ratings, five "hold" ratings and no analysts recommending that you "sell", according to Zacks. Last week, Hasbro was rated new "Buy" with a $61 price target at Jefferies, which noted how well the company is leveraging its brands.

Earnings Estimates

The company is expected to post full-year earnings per share of $2.60, up from $2.48 in 2009.

Stock Ratio

The company has a price-earnings ratio of 15.61.

Amazon ( AMZN) is a Toy Story stock by virtue of selling the DVDs and related merchandise. Just yesterday, the online retailer announced its "Best of 2010" lists and Toy Story 3 DVDs ranked among the "most popular gift products."

In October, Amazon reported a 16% jump in third-quarter profit and a 40% surge in sales.

The stock gained 34% in 2010 and is up 5% this year. Amazon is considered a "buy" with a "B" grade from TheStreet Ratings.

Other Analyst Ratings

The stock has 22 "buy" ratings, 10 "hold" ratings and two "strong sells", according to Zacks.

Earnings Estimates

The company is expected to post full-year earnings per share of $2.55, up from $2.04 in 2009.

Stock Ratio

The company has a price-earnings ratio of 76.11.

Toys R Us represents a potential future Toy Story play as one of the retailers singled out by Disney in its PR hype about the value of Toy Story merchandise.

We're still waiting for the IPO after Toys R Us' owners filed in May to raise as much as $800 million though an initial public offering. The toy retailer has been owned by KKR, Bain Capital and Vornado Realty Trust since a $7.5 billion acquisition in 2005.

--Written by Glenn Hall in New York. (Click on the name to contact the writer).

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

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