10 Best Stocks to Buy According to John W. Rogers of Ariel Investments

5. Mattel, Inc. (NASDAQ:MAT)

Ariel Investments’ Stake as of Q4: $262.7 million

Number of Hedge Fund Holders: 30

Mattel Inc. (NASDAQ:MAT) is a multinational toy manufacturer headquartered in California. The company focuses on the design and manufacture of high-quality toys and other consumer products. It also produces action figures, building sets, and games under the trademarks MEGA, UNO, and WWE, as well as licensed products from Disney, Microsoft, and NBCUniversal.

The toy manufacturer had a great fourth-quarter performance in 2024, with sales up 3% and operating profit rising 10%. Mattel, Inc. (NASDAQ:MAT) expects net sales to climb 2% to 3% in constant currency in 2025, with adjusted EPS ranging from $1.66 to $1.72, representing a 2% to 6% increase. UBS analysts responded by lifting Mattel’s price target to $29, citing better-than-expected fiscal year 2025 earnings guidance. Similarly, DA Davidson raised their price target to $30, citing the company’s strong execution strategy and intentions for significant share repurchases in 2025.

Longleaf Partners Fund stated the following regarding Mattel, Inc. (NASDAQ:MAT) in its Q1 2025 investor letter:

“Mattel, Inc. (NASDAQ:MAT) – Global toy and media company Mattel contributed for the quarter, reporting solid results for the all-important 4Q, with 2% revenue growth and 6% growth in earnings before interest, taxes, depreciation and amortization (EBITDA). We were also pleased to see management repurchase a material amount of shares at great prices and commit to repurchasing at a high-single-digit percentage of shares outstanding in 2025 if the share price remains attractive. Mattel provided a relatively straightforward and growing outlook for 2025, even taking into account tariff risk at the time. Although conditions have deteriorated since then, CEO Ynon Kreiz’s foresight in diversifying the company’s supply chain years ago will pay dividends. The market continues to price in little future growth for the existing business or further success in media and gaming.”