The shares of leading toy manufacturer Mattel (MAT) have witnessed significant price momentum over the past few months. However, with the sector currently grappling with severe supply chain disruptions and an inability to satisfy demand, can the stock maintain its momentum ahead of the holiday season? Let’s find out. Mattel Inc . (NASDAQ:MAT), which is headquartered in El Segundo, Calif., is a global leader in children's entertainment, specializing in the design and manufacture of high-quality toys and consumer goods. Its portfolio of iconic franchises includes Barbie, Hot Wheels, American Girl, Fisher-Price, Thomas & Friends and Mega, and other popular brands that it owns or licenses in partnership with global entertainment companies.
The company's shares have gained 44.6% in price over the past year to close Friday’s trading session at $20.63. Its top-line growth, driven by its portfolio of iconic brands and major product launches, has contributed to the price rally.
However, we fear that the industry-wide challenges that the company faces could negatively impact its fundamental performance in the coming months despite the high holiday-season demand.