Hasbro, Inc. (HAS) had a notable trading day. The company's shares hit a new 52-week high of $40.77 after the first-quarter earnings report was distributed to the market. Volume was strong during the session.

Quite frankly, I look upon Hasbro as a very viable candidate for investment capital. Why do I say this? Well, I think we've got a nice combination of technical and fundamental strength. And let us start with the technical side of things. Check out the one-year chart. Not a bad trend, huh? Wall Street is clearly positive on the future prospects of the toy maker. Put this chart together with the 52-week high and you've got yourself a compelling price-action thesis.

Hasbro (NYSE: HAS), a toy maker that competes with Mattel (NYSE: MAT) and JAKKS Pacific (NASDAQ: JAKK), reported a steep drop in quarterly earnings on Monday. Net income was $0.62 per share in the fourth quarter, compared to $0.84 per share in the year-ago period. Net sales pulled back by 5%, given the effects of currency translation. According to Stocks in the News, analysts were hoping for something along the lines of $0.74 per share.

Last week, I looked at toy maker, Hasbro (NYSE: HAS). Today, we turn to toy maker Mattel (NYSE: MAT), which is being recommended by Jocelynn Drake.

The analyst with Schaeffer's Investment Research notes, "Mattel skipped into the earnings spotlight; second-quarter net income jumped 15.2% to $43.5 million, or 11 cents per share, with sales for the 3-month period up 6.5% to $1.02 billion."

Revenue for the second quarter, she notes, was boosted by favorable exchange rates and sales growth for the firm's Barbie and Hot Wheels toys, which rose 6% and 20%, respectively.

She explains, "Heading into the earnings report, investors were extremely skeptical of the shares. Schaeffer's put/call open interest ratio has risen to 0.77, which is higher than 84% of all those taken during the past 52 weeks."

Boosted by its licensing rights and marketing agreements for such characters as Spider-Man, Fantastic Four and Transformers, quantitative analyst Vahan Janjigian recommends toy maker Hasbro (NYSE: HAS).

The editor of The Forbes Growth Investor says, "Hasbro has done an outstanding job of selecting licensing opportunities," noting that licensing agreements with Lucas Licensing and Marvel Entertainment give Hasbro rights to develop toys based on Star Wars movies and Marvel comic books.

The Marvel deal, he notes, provides an excellent example. Janjigian says, "Its numerous comic book characters, some of which are more than 40 years old, offer plenty of potential for future sales, especially as more of them make it onto the big screen."

He states, "A renewed focus on core brands and licensed merchandise has led to strong results in the past year. First quarter net revenues surged 33.6% year-over-year to $625.3 million."

Spider-Man branded merchandise, he observes, which benefited from the release of the movie Spider-Man 3, was responsible for more than half of the growth in volume.

The recent opening of Fantastic Four: Rise of the Silver Surfer, he adds, could translate into brisk toy sales in the second quarter. Indeed, he forecasts, with seven films based on Marvel properties projected to be released over the next two years, Hasbro's prospects look "extremely promising."

Further, he says, "Hasbro should also benefit from the much hyped Transformers film." In fact, he notes, licensing revenues should receive a boost from the more than 230 Transformers-related agreements entered into by third-parties expecting to capitalize on the film.

He explains, "Transformers could signal more movie opportunities for HAS owned properties, which may further boost brand awareness and toy sales. Indeed, a G.I. Joe movie is already in the works."

The advisor concludes, "And let's not forget the company's more traditional products. The company has some of the most recognized brand names in the toy industry. Milton Bradley and Parker Brothers make classic board games such as Monopoly and Scrabble."

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.