Stocks for the Return of Football
College football made a roaring comeback Labor Day weekend, while professional football returns this week. Now that Football season is about to be in full swing, what stocks will be affected and what might they do?
While investors can't put money directly into football teams (with the exception of the Green Bay Packers), it's still possible to cash in on football season by looking at companies that tend to benefit from America's most popular spot.
Retailers providing sporting goods and outdoor apparel can be a good bet. Tailgating drives demand for footballs and athletic apparel, so sporting goods stores are often a one-stop shop for non-food tailgate items. As fans look to stock up on gear, shares of companies like Dicks Sporting Goods (NYSE: DKS) may benefit.
Brands such as Under Armour (NYSE: UA) and Nike (NYSE: NIKE) could also see a boost as high school players buy gear for the season. The company's expensive sponsorships of football teams pay off as their gear is used by the best players on the field in front of millions of fans. While expensive, the product placement helps to boost sales for the athletic apparel companies.
Historically, both stocks tend to follow a similar trend with Under Armor just recently crossing above Nike and moving ahead in share price. While both stocks bottomed out in early 2009, they have demonstrated steady growth for the past three years, and a strong football season should continue that trend.
Ticket providers such as Ticketmaster (NYSE: LYV) could also see a boost from the season. While football tickets are not as numerous as baseball or hockey, they tend to be much higher priced, especially for playoff games.
Among other stocks affected by the start of football season are beer and spirit stocks such as Anheuser-Busch (NYSE: BUD), Molson Coors (NYSE: TAP), and spirit maker Diego (NYSE: DEO). With tailgates fueled by domestic beer and football stadiums turning out record crowds, fall is a good time for beer and spirit makers. All three companies have experienced a good summer, but with tailgating season right around the corner, its a good bet they will see continued growth.
Shares of Anheuser-Busch traded up around $85.14, up roughly 1.15%.
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