6 Stock Plays to Score Big Gains on Your Favorite Sports
2024.06.26 08:06
- Do you like sports and want to invest in the sector?
- There are multiple ways to invest in sports these days, through stocks of teams or companies that organize and manage events.
- Today we’ll look at some stocks that can offer a great way to invest in your favorite sports or teams.
- Unlock AI-powered stock picks for under $7/month: Summer sale starts now!
Love sports? Now you can take your fandom to the next level – by investing in your favorite sports. From the world’s top soccer clubs to high-octane Formula 1 racing, there are opportunities to own a piece of the action.
The world of sports investing offers several investment opportunities. You can directly invest in publicly traded teams and clubs, or companies that fuel the entire sports industry.
In this piece, we will discuss the best ways to invest in some of the world’s most popular sports like soccer and basketball, along with the high-speed thrills of Formula 1.
1. Madison Square Garden Sports (MSGS)
Madison Square Garden Sports (NYSE:) is a professional sports company in the United States that owns a portfolio of assets consisting of an NBA team (New York Knicks) and a Hockey League team (New York Rangers).
It also owns Knicks Gaming, an e-sports franchise that competes in NBA 2K. The company was formerly known as The Madison Square Garden. It was incorporated in 2015 and is based in New York.
It reports its results on August 15 and is expected to report EPS up 106.87% and revenue up 68.73%.
The average target price given by the market is $246.80.
2. Manchester United (MANU)
Manchester United (NYSE:) soccer operations comprise various activities, such as managing the first team, the subsidiary team, the youth academy, etc.
It monetizes its global brand value through marketing and sponsorship relationships with international companies and also through the sale of Manchester United-branded sportswear.
It will publish its results on September 24. The previous results for March surprised with EPS that exceeded market forecasts by 182%.
It has signed an agreement with Malaysia Airlines that will make the airline the club’s official carrier to expand throughout Asia.
The market gives it an average target price of 18.87 dollars.
3. Liberty Media Formula) One
Liberty Media Formula (NASDAQ:) One (NASDAQ:) is a global media and entertainment company.
The company’s segments include Sirius XM Holdings (NASDAQ:) and Formula One. It was founded in 1991 and is headquartered in Colorado.
On August 2 we will know its numbers and going into the year the expectation is for EPS growth of 93.9% and revenues of 19.8%.
Its shares are characterized by low volatility, making it a potentially stable investment option. The company’s liquid assets also exceed its short-term liabilities, which may reassure investors about its financial resilience.
In its favor it has Formula 1’s strong start to the 2024 season with record attendance and that the Las Vegas Grand Prix is generating strong demand, especially for sponsorships. In addition, Formula 1 has announced new partnerships and audiovisual rights deals.
The average target price observed by the market is at $90.90.
4. TKO Group (TKO)
TKO Group (NYSE:) is a media conglomerate created by Endeavor as part of a merger between World Wrestling Entertainment (WWE) and Zuffa, the parent company of the Ultimate Fighting Championship (UFC).
Upon completion of the merger on September 13, 2023, both fighting companies operate as divisions under the TKO banner. It is headquartered in New York.
It presents its accounts on August 8 and the forecast is for a 101% increase in EPS for the year and revenues of 60%.
It has announced the merger of its UFC and WWE Live Events teams into a single unit, the TKO Live Events Strategy Team. The move is intended to consolidate the company’s position in the live events market and capitalize on the combined strengths of the two globally recognized entities. In the first quarter, UFC and WWE achieved record attendance and revenue numbers, with UFC selling out all of its events and WWE setting new milestones in ticket revenue.
With an astounding 105.3% revenue growth in the first quarter, its financial health is optimal.
The average price target assigned to it by the market is at $117.58.
5. Borussia Dortmund (BVB)
Borussia Dortmund (ETR:) is one of the most successful German soccer teams, behind Bayer (ETR:) Munich. It was founded in December 1909 and is based in Dortmund, in the federal state of North Rhine-Westphalia. It played in the final of the last edition of the Champion League but failed to win it against the all-powerful Real Madrid.
On October 2, it presents its accounts.
After losing the final to Real Madrid, its shares fell by 7.3%. Previously, its shares had soared more than 30% since mid-April, after eliminating Paris Saint-Germain in the semifinals, Atletico Madrid in the quarterfinals, and, before that, PSV in the round of 16.
At the very least, under the clause of Bellingham’s transfer from Borussia to Madrid, when the white club won the Champion, he had to pay 32 million euros to the German club.
The target price given by the market is 5.50 euros.
6. Juventus Football Club (JUVE)
Juventus Football Club (BIT:) is a soccer team based in Italy. The company’s core business is participation in national and international competitions while exploiting sporting events, brand and image. It is based in Turin and was founded in November 1897. It is the second oldest Italian soccer team among those still active, after Genoa.
It will publish its results report on September 20.
The Italian club has signed an agreement with the sports e-commerce company Fanatics for a merchandising partnership covering ecommerce, retail and licensing on a global scale.
The Turin-based team is planning to turn around its red numbers by the 2026-2027 season. The plan envisages a progressive improvement in economic and financial results, with the achievement of a positive net income and cash flow in that year.
Neither the fair value or reasonable price based on fundamentals, nor the market consensus sees potential, but if it breaks the 2.50 euro mark, things will change.
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Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counsel or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple perspectives and is highly risky and therefore, any investment decision and the associated risk remains with the investor.
