This veteran value investor sees a great buying opportunity in Mattel Inc

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Nov 8, 2021
  • Ariel Investments' John Rogers sees opportunity in the value stocks.
  • He explains why Mattel is one of his favourites on CNBC's "Squawk Box".
  • The toy company reported market-beating results for Q3 last month.

The major Wall Street indices are trading at record highs on Monday, but Ariel Investments’ John Rogers says the equity market still has plenty of opportunities for investors to make good money.

Rogers sees opportunity in value stocks

Rogers agrees the broader market, including the FAANG stocks, is quite expensive but is convinced a list of value stocks still offer “pockets of opportunity”. On CNBC’s “Squawk Box”, he said:

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There are some really cheap value stocks in our mid-cap speciality space, especially companies that are involved in the marketing of consumer products; companies in the media space, companies in the sports arena space. There are lots of opportunities.

His outlook is similar to Morningstar that quoted historical price action last week to predict value stocks will outperform growth names as the economy continues to recover from the pandemic.

Reasons that Mattel Inc is Rogers’ favourite

One name in particular that pops out to him is Mattel Inc (NASDAQ: MAT) that has topped expectations by a significant margin in the trailing six to seven quarters. Rogers added:

Ynon has done an extraordinary job in turning that business around. He’s brought Barbie back to life, he’s doing wonderful things with American Girl and Fisher-Price, and all the IP for the movies coming out next year. Mattel is an extraordinary value we think here today.

According to Rogers, Mattel CEO Ynon Kreiz is confident the stock is cheaper now than at any other time in his tenure. The Ariel Investments’ expert forecasts demand for toys to remain strong in the upcoming months.  

In October, Mattel said its profit more than doubled in Q3 on a year-over-year basis and that it was ready for a strong holiday season.

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