2012 is going to be an incredibly eventful sports year. In addition to the annual mega events like the Super Bowl and the Champions League Final, sports fans get to enjoy the soccer European Championships tournament in June and the Olympic Games in August. On top of the entertainment value, these events may also add value to your portfolio.
Benzinga took a look at the companies that could benefit from this ecstatic sports year and potentially make a nice addition to your portfolio.
1. Nike NKE
Market cap: $44.12 billion
P/E: 20.38 Nike is the largest sports apparel company in the world. Hence, an eventful sports year can have a significant impact on Nike's annual performance. The stock is currently up 14 percent year-to-date trading at its all time highs. Sterne Agee analyst, Sam Poser, told Benzinga that the Olympic years have historically been good for Nike and that the company is also rolling out new products and technologies. Thus, the uptrend is likely to continue in 2012 – assuming that the consumers follow their historical spending patterns. 2. Under Armour UA
Market Cap: $3.66 billion
P/E: 42.93 Under Armour is a rising name in the sports apparel business and the company has been able to become a prominent player in a relatively short amount of time. Under Armour is probably best know for its football gear, but it has increased the soccer and track and field product offerings. Hence, 2012 could be a breakthrough year for the company in many areas. The stock is up almost 10 percent year-to-date and trades over 43 times its trailing 12-month earnings. However, there might still be room on the upside, if the company manages to capture a larger market share from its competitors in 2012. 3. Adidas ADDYY
Market Cap: $13.65 billion
P/E: 42.93 Nike's European counterpart has a strong foothold in soccer and multiple Olympic sports. Thus, the year 2012 could be extremely successful for the German sports apparel giant. The company is one of the official partners of EURO 2012 tournament, which will give it a significant amount of TV exposure. 4. Comcast Corporation CMCSA
Market Cap: $64.92 billion
P/E: 17.08 Comcast owns 51 percent of NBCUniversal, which holds the U.S. TV rights for the 2012 Summer Olympics. The 2008 Olympic Games in Beijing became the most watched event in the U.S. TV history. If this trend continues, NBCUniversal and Comcast are likely to see a steep increase in its viewership. The stock is up 8 percent year-to-date with a nice uptrend within the past 30 days. High ratings during the Olympic Games could ensure that the positive trend carries over to the end of the next year. The traders should note that both major events, Olympic Games and Euro Championship, will take place in Europe. Hence, if the current Euro Zone crisis evolves into a recession, it might a have a negative impact on the sales of sports apparel and fan gear in the region. Additionally, potential slowdown in China could also hurt the sales of these products.
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P/E: 20.38 Nike is the largest sports apparel company in the world. Hence, an eventful sports year can have a significant impact on Nike's annual performance. The stock is currently up 14 percent year-to-date trading at its all time highs. Sterne Agee analyst, Sam Poser, told Benzinga that the Olympic years have historically been good for Nike and that the company is also rolling out new products and technologies. Thus, the uptrend is likely to continue in 2012 – assuming that the consumers follow their historical spending patterns. 2. Under Armour UA
Market Cap: $3.66 billion
P/E: 42.93 Under Armour is a rising name in the sports apparel business and the company has been able to become a prominent player in a relatively short amount of time. Under Armour is probably best know for its football gear, but it has increased the soccer and track and field product offerings. Hence, 2012 could be a breakthrough year for the company in many areas. The stock is up almost 10 percent year-to-date and trades over 43 times its trailing 12-month earnings. However, there might still be room on the upside, if the company manages to capture a larger market share from its competitors in 2012. 3. Adidas ADDYY
Market Cap: $13.65 billion
P/E: 42.93 Nike's European counterpart has a strong foothold in soccer and multiple Olympic sports. Thus, the year 2012 could be extremely successful for the German sports apparel giant. The company is one of the official partners of EURO 2012 tournament, which will give it a significant amount of TV exposure. 4. Comcast Corporation CMCSA
Market Cap: $64.92 billion
P/E: 17.08 Comcast owns 51 percent of NBCUniversal, which holds the U.S. TV rights for the 2012 Summer Olympics. The 2008 Olympic Games in Beijing became the most watched event in the U.S. TV history. If this trend continues, NBCUniversal and Comcast are likely to see a steep increase in its viewership. The stock is up 8 percent year-to-date with a nice uptrend within the past 30 days. High ratings during the Olympic Games could ensure that the positive trend carries over to the end of the next year. The traders should note that both major events, Olympic Games and Euro Championship, will take place in Europe. Hence, if the current Euro Zone crisis evolves into a recession, it might a have a negative impact on the sales of sports apparel and fan gear in the region. Additionally, potential slowdown in China could also hurt the sales of these products.
ACTION
ITEMS:
Bullish:
Traders who believe that 2012 will be a positive year for sports related stocks might want to consider the following trades:
Traders who believe that the economic crisis in Europe outweighs the positive impacts of the sports events may consider alternative positions:
You can follow me on Twitter @TuomoKallioBullish:
Traders who believe that 2012 will be a positive year for sports related stocks might want to consider the following trades:
- Go long the stocks mentioned in the article.
- If you want to diversify, take a look at the Consumer Discretionary SPDR ETF XLY that provides exposure to Nike and Comcast.
- The Olympic Games tend to increase the overall economic activity in the host country. iShares MSCI United Kingdom Index EWU is a good way to play this.
Traders who believe that the economic crisis in Europe outweighs the positive impacts of the sports events may consider alternative positions:
- The shares of Nike have been rallying lately. Hence, taking a short position may be a good way to play the disappointment of the Olympic year.
- ProShares UltraShort MSCI Europe EPV is an ETF that might help you profit from a potential economic slowdown in Europe. Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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