14 Best Sports Stocks.
In general, we don’t recommend investing in individual stocks compared to diversified funds, but we have put together a list for those who are interested in firms in this area.
If you have any questions or want to invest as an expat or high-net-worth individual, you can email me (advice@adamfayed.com) or use estas opciones de contacto.
Introducción
Thinking of investing in the best sports stocks? Here are 14 of them.
Sports stocks are equities that professional sports leagues like football, boxing, or auto racing use. These professional sports leagues spend a lot of money on their teams and players and make money from people wanting to buy the items that those teams and players produce.
The word “sports stocks” refers to any stock that is used by a professional sports league, such as the NFL or the NBA, and that is listed on the Over The Counter Bulletin Board (OTCBB).
Even though this is the case, shares on well-known stock exchanges do not usually mean the same thing as sports stocks.
The majority of professional sports organizations devote a significant portion of their financial resources to the pursuit of elite talent, the development of winning team cultures, the identification of prize winners, and the upkeep of profitable business models.
Owners of the teams must split the income and costs connected with running the team and the merchandise linked to the team in exchange for these assets. Stocks that are listed on the OTCBB are sports stocks.
As a result, shareholders have the opportunity to purchase shares directly from their favorite teams or athletes.
As the best sports stocks are likely to remain stable over time, the related volatility may also be a good fit for long-term investors, whereas volatile stocks could only be suitable for short-term investors. Here are a few of the best sports stocks to take into account:
14 Best Sports Stocks
1. Madison Square Garden Sports Corp. (NYSE: MSGS)
The NBA’s New York Knicks and the NHL’s New York Rangers are two of the teams managed by Madison Square Garden, an American sports holding company with its headquarters in New York.
It was created as a result of the media, entertainment, and sports teams that Cablevision Systems Corporation spun off.
Live events and Madison Square Garden go hand in hand, but there are more important reasons to buy its stock which is one of the best sports stocks to buy.
Its involvement and support of e-sports are one of the main justifications for purchasing its stocks.
The League of Legends World Championship once took place in the most renowned arena in the entire world, filling all 18,000 seats over two nights for at least $46 per ticket.
The New York Rangers and Esports Entertainment Group will collaborate to hold three virtual competitions in 2021, MSG also revealed in June of that year.
2. Madison Square Garden Entertainment Corp. (MSGE)
Unlike Madison Square Garden Entertainment, which acquires the teams, MSGS is focused solely on the location. Naturally, Madison Square Garden, one of the most expensive sports venues in the world, is the company’s crown jewel.
However, there are also two significant stadium construction projects underway in Las Vegas and London.
Of course, it won’t matter how gorgeous the arena is if people can’t watch live sports during the pandemic; but, MSGE is well-equipped to survive till spectators return with to a huge $1.2 billion in cash, an amount boosted thanks to the recent sale of the Forum to Steve Ballmer last year in March.
Although the pandemic caused a 96% year-over-year reduction in total revenue during the fourth quarter, MSGE has a lot of value that should benefit stockholders once customers can return to the Garden.
3. Ladbrokes (LSE: LCL)
In terms of sports betting alternatives, Ladbrokes, a well-known company in the UK, provides its customers with a wide range of selections. Using Ladbrokes services is now possible for anybody, anywhere thanks to online gaming.
This business has many years of experience serving as a top financial counsellor to clients from all walks of life.
By properly planning and implementing its strategy, it has managed to stay afloat in a highly turbulent environment. Ladbrokes enables you to confidently manage your investments as a result.
One of the top online sports betting bargains can be found at Ladbrokes. They provide their customers with enticing possibilities where they may pick from a large selection of items.
These include renowned companies such as William Hill, Ladbrokes, ING Direct, Ladbrokes Invest, Plundr, and many others. It is usually a good idea to compare Ladbrokes’ online gaming offerings with those of other businesses to determine which one is ideal for you.
Ladbrokes is the most popular online gambling supplier because it offers enticing perks including exceptional customer service, aggressive pricing, top payment guarantees, simplicity of use, 24-hour online customer assistance, and much more.
The Ladbrokes company oversees the investments for its global group of companies. Through a methodical and disciplined strategy, it seeks to provide equity returns that are profitable.
Ladbrokes makes sure that customers are never forgotten and keeps coming up with creative, new methods to deliver top-notch customer care. Additionally, the business promises to defend the interests of its clients in the event of a dispute.
The Ladbrokes sports portfolio consists of highly diversified portfolios that include foreign exchange, local and international equities, risk products, and currencies. The company wants to give its stockholders exceptional long-term growth and return on equity.
Ladbrokes’ main trading methods include short and long positions in international equities, commodities, healthcare, derivatives, insurance, and financial markets.
In addition to these, the business has a tough attitude on property foreclosures and short sales. The company’s website lists many investment possibilities and provides free investing advice.
4. Churchill Downs Inc. (NASDAQ: CHDN)
The Louisville, Kentucky racetrack where Churchill Downs Incorporated is located is better known for hosting the Kentucky Derby, an annual sporting event that has attracted thousands of spectators for the past 146 years.
However, it does not solely rely on its revenue from conventional horse racing events. Through its platform, it also engages in online gaming and wagering.
In addition, Churchill Downs owns 15 other top-tier racing facilities and casinos, including the upcoming November 24 expansion of Newport Racing & Gaming.
However, according to the fourth-quarter report, not even the pandemic could seriously threaten the company’s financial stability.
According to the report, Churchill Downs generated almost $400 million in revenue, up from less than $340 million in the prior quarter, and adjusted EBITDA exceeded $155 million, or about $30 million more than in the third quarter.
Horse racing is less likely to end because it is already a tradition, but because of its diversity and strong financial position, it is wise to invest in its sports.
5. World Wrestling Entertainment (NYSE: WWE)
WWE does not depend on ticket sales for revenue, in contrast to other sports stocks.
In fact, only 18% of the business’s income in the second quarter of 2019 came from live events; as a result, even when that revenue fell 98% in the same period in 2020, overall revenue at WWE only fell by 17%.
The WWE Network subscriptions and content licensing provide the majority of the company’s revenue.
WWE Network paid subscriptions surged by 6%, and paid users’ views of digital videos increased by an astonishing 55%, even if media income only increased by 2% in the second quarter.
This suggests that WWE fans are insatiably hungry for wrestling entertainment, and even while the corporation may not have the same widespread popularity as the NFL, its devoted fan base will enable it to recover well after the pandemic is over.
6. Walt Disney Company (NYSE: DIS)
Many people need to learn that Walt Disney participates in sports. The company is more than just its castles, rides, and movies. Surprisingly, Walt Disney stock is one of the best sports stocks to buy.
It partners with ESPN to open a 220-acre sports complex in Disney’s Florida park, making it one of the owners of the most well-known sports channel in the world thanks to its ownership of 80% of ESPN’s shares.
The deal between Walt Disney and ESPN networks and Peyton Manning’s Omaha Productions was extended in February 2022 to cover a fourth season of Monday Night Football, the NFL’s alternate telecast that averages almost 2 million viewers during regular seasons.
For sports fans seeking variety, purchasing Walt Disney stock entitles them to ownership of the company’s extensive portfolio of offerings, including streaming services like Hulu and Disney+.
These two currently hold a strong position in the market, with Disney+ adding more than 115 million subscribers globally in the final quarter of 2021.
Technavio projects that the global market for online streaming will expand at a CAGR of 18.74% between 2020 and 2025, while Juniper Research projects that platforms will have 2 billion active subscribers worldwide by the end of the forecast period.
7. Liberty Media Corporation (NASDAQ: BATRA, Series A)
Liberty Media Corporation is a mass media conglomerate with headquarters in Colorado that was established in 1991 as a spin-off of an American television group, unlike Liberty Interactive Corporation (or Qurate Retail Inc).
The Atlanta Braves, Formula One, and Sirius XM—one of the fastest-growing American broadcasters offering online and satellite radio coverage of sporting events—are just a few of the many assets the company has acquired over the years.
Additionally, it holds a 3% stake in the drone racing league DRL and a 7% stake in the Ball Arena’s owner, Kroenke Arena Company.
With this knowledge, portfolio diversity and niche are at least two factors that make investing in its stocks worthwhile.
A tried-and-true method for reducing losses that makes use of a steady stock and the expansion of emerging stocks is diversification.
However, concentrating on a particular market—such as racing or even broadcasting with Sirius XM—prevents the company from competing with other, equally potent, publicly traded sport-related businesses.
8. DraftKings (NASDAQ: DKNG)
The DraftKings has a straightforward but appealing idea: players can partake in daily fantasy games or sports betting.
When purchasing this stock, investors must take into account the challenges presented by these two games, but they can also be very profitable. DraftKings stock is one of the best sports stocks to buy.
The Boston-based DraftKings is one of the key players in the fantasy gaming market, according to Technavio, which reported that it expanded by almost 5% on an annual basis.
Additionally, many states are legalizing sports betting, including New York, Wyoming, Colorado, Michigan, and Connecticut.
DraftKings had a market capitalization of more than $20 billion in the middle of 2021, and in the same year, it paid $50 billion to Meadowlark Media to distribute a podcast about pop culture and sports.
This is yet another indication that the company is open to change and willing to entice a new generation of digital users.
9. Dick’s Sporting Goods (NYSE: DKS)
Dick’s Sporting Goods, a Fortune 500 company with its headquarters in Pennsylvania, has more than 850 stores nationwide and has been selling sporting goods since it was established in 1948.
Numerous factors, including sound finances, contribute to Dick’s success as a retailer that focuses on sports.
It paid off all secured credit totalling $1.855 billion early this year before entering into another one, offering $750 million in 2032 senior unsecured notes with a 3.15% yield.
Consolidated same-store revenues increased by more than 12% for the third quarter of 2021 after rising by 23.2% the year prior.
Dick’s has effective grassroots programs that increase the significance of their stores in the neighbourhood by encouraging young athletes and supporting land conservation.
Last but not least, this sporting company has benefited from strong leadership, particularly from Lauren Hobart, its first female CEO, who has a background that includes extensive experience at Wells Fargo and JP Morgan Chase.
10. Peloton (NASDAQ: PTON)
Peloton Interactive is one of the best sports stocks to buy. In late 2019, this business just recently went public. It is best known for its touchscreen-equipped stationary bikes.
The Peloton Bike+ costs $2,495 while the Peloton Bike is priced at $1,495. The company went public at just $25 per share, but since then, the share price has increased by more than 350% to over $100.
The main thing to keep in mind about Peloton is that, since 2017, its annual revenue growth has averaged 100%. Despite not having the first bike until 2014, sales for the fiscal year 2021 have already surpassed $4 billion.
Peloton users can now access live classes to enhance their workout experience. They can also use features such as leaderboards, challenges, and others. This fosters a sense of community and a family atmosphere that rivals that of your most memorable sports teams.
Its combination of intense community loyalty and sleek technology feels similar to Apple’s early days.
Furthermore, Peloton has the potential to build an entire workout ecosystem centered on its bikes. A treadmill has already been added to the company’s product line. This expanding ecosystem contributes to it being one of the best sports stocks to consider investing in.
11. Nike, Inc. (NYSE: NKE)
Nike, which is popular for its recognizable “swoosh,” creates and markets sports and athletic clothing, footwear, equipment, and accessories.
Since its founding in 1964, the Oregon-based company has expanded to become the largest supplier of athletic clothing and footwear in the world.
It is also one of the most valuable brands on the market, with sales revenue exceeding pre-pandemic sales in 2021, reaching $17.3 billion, according to Statista.
Even though Nike’s solid financial position makes it a good investment, the company won’t be a leader in its field unless it keeps a step ahead of its rivals.
Despite the fact that men’s athletic wear and shoes account for the majority of Nike’s sales, the company hopes to change perceptions by increasing its market share in women’s clothing.
Nike also introduces cutting-edge and environmentally friendly goods to appeal to a variety of customers, including Generation Z with a purchasing power which is estimated to be $150 billion.
12. Lululemon Athletica (NASDAQ: LULU)
Lululemon is an athletic clothing brand that was established in 1998. Initially specializing in the sale of yoga clothing and accessories, the brand later branched out into athletic wear and lifestyle apparel.
One of the best retailers, the company has more than 400 locations across the US and abroad.
Its strong omnichannel performance, which saw its e-commerce sales double in 2020 and end the pandemic’s first year with no debt, is another factor in its success.
Its futuristic business strategy, which includes educator training, virtual shopping, and at-home fitness, endears it to discerning customers, particularly millennials and Generation Z.
The company has also carved out a niche for itself by establishing itself as a luxury brand that can charge a higher price for its high-quality clothing.
By adding men to its product lines, it is also challenging the notion among consumers that it only serves women.
13. Penn National Gaming (NASDAQ: PENN)
Penn National Gaming operates and runs 44 casinos, racetracks and other facilities in Canada and the United States. It is also the business that acquired a 36% stake in the well-known sports blog Barstool Sports, so you may be familiar with it from that source.
The 66 million monthly users of Barstool were made accessible to Penn National through this acquisition. With the launch of the Barstool Sportsbook app, which surpassed DraftKings’ download total in the app store, Penn National has already reaped the benefits of this acquisition.
Although sports betting is only legal in 14 states, Americans bet a total of $13 billion on sporting events in 2019 alone. This figure nearly doubled from the previous year. And this rapid rise is good news for almost any company that makes money from sports betting.
It is spawning a new generation of the best sports stocks. How the recently passed “Name, Image, and Likeness” bill, which affects college athletes, will affect Penn National’s business is another intriguing aspect of the company.
This bill allows student-athletes to make money off of their name, likeness, and reputation. Barstool is in a great position to profit even though this is still a bit of a free-for-all.
It was a no-brainer to launch Barstool Athletes because Barstool Sports is already hugely popular among younger audiences. Approximately 75,000 applications from interested athletes were received just two days after the bill was signed, according to CEO Dave Portnoy.
Even if it’s difficult to predict how this will affect Barstool, it’s never a bad indication when hundreds of college athletes want to represent your company. A Barstool Sports T-shirt rather than one from Nike or Adidas may be worn by the NCAA football championship MVP in a few years.
In the first and second quarters of 2021, Penn National recorded revenues of $1.27 and $1.55 billion, respectively. The activity at Penn National’s casinos and online platforms is set to soar in the next months as a result of 2020 effectively shuttering their operation.
Since 2020’s beginning, its stock has increased by more than 200%. The share price has since fallen significantly below $100 from its peak of over $130.
14. Super League Gaming, Inc. (NASDAQ: SLGG)
Super League Gaming, a company that debuted on the stock market in 2019, and other organisations have made the world of esports a hugely exciting addition to sports entertainment.
Focusing on the metaverse, which could grow by a staggering 40% from 2021 to 2027 and have a market value of more than $340 billion by the end of the forecast period, is one of the main reasons to purchase a long-term stock in this company.
Super League has already signed a multi-year deal with LiveOne to stream pay-per-view events like music festivals.
En company has also developed a seamless ecosystem of services such as Minecraft world creation, Roblox design, and sharing or streaming games.
It aims to retain loyal customers while attracting new ones through new services such as increased customization.
¿Le duele la indecisión financiera? ¿Quiere invertir con Adam?
Adam es un autor reconocido internacionalmente en temas financieros, con más de 830 millones de respuestas en Quora, un libro muy vendido en Amazon y colaborador de Forbes.
