5 Stocks for the NFL Draft (NKE, BUD, MSG, DIS, UA)

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The 76th Annual Selection Meeting. In other words, it's the NFL Draft, and football fans will be sitting on their couches or crowded in Radio City Music Hall to hear the names their teams believe will help lead them to a Super Bowl. Whether your team has the first pick in the draft (Carolina Panthers) or won the Super Bowl (Green Bay Packers), you are hoping that your team's picks will help lead you to the glory and promise of a Super Bowl championship. The NFL, which is currently mired in a lockout (though the stay on Judge Susan Richard Nelson's ruling was declined yesterday, allowing the players to return to work), has become a multi-billion dollar business, and is in a sweet spot that no other sport can compare to. TV ratings are way up, parity in the league gives almost every team a chance to win every year, and America's love affair with bone-crunching tackles, 50 yard bombs, and blitzing linebackers has never been higher. With the NFL being such a big business itself, and the Draft taking place today, there are quite a few stocks that are poised to benefit from the Annual Selection Meeting, being held today until Saturday in New York City. The first beneficiary is Nike
NKE
, which won the league's contract to supply jerseys. The prior contract had been held by Reebok, but Nike is now the sole provider of NFL jerseys, and whether your favorite player is Tom Brady, Peyton Manning, or Ray Lewis, Nike will be reaping the benefits of the jersey and apparel sales for years to come. Shares are yielding 1.6%, and are trading at 16.9 times forward earnings. Shares closed at $81.16 yesterday. Anheuser-Busch InBev NV
BUD
shares will benefit, as Budweiser is the official beer of the NFL, and what's more American than drinking beer, and watching analysts dissect a player you've never heard of from some small school in the Midwest, and talk about his ability to play the zone blitz? That's right, nothing. Shares sport a 1.5% dividend yield, and trade at 14.6 times next year's earnings. Shares closed at $63.45 yesterday. Walt Disney Co.
DIS
carries the NFL Draft on its ESPN and ESPN2 networks, and if this years draft is anything like last years, it will mean big ratings, and big advertising dollars for Disney. Last year was the first year of the format change, as the first round was moved to Thursday nights in prime time. Disney shares are yielding 0.9%, and are trading at 14 times forward earnings. Yesterday's closing price was $42.58. Madison Square Garden
MSG
is hosting the event at its iconic Radio City Music Hall, and should see a bump up in revenues, and concession sales, as rabid NFL fans occasionally do eat. Shares closed at $27.00 yesterday, and are trading at 22.7 times next year's earnings. The last stock to consider is Under Armour
UA
, which has the star player in the draft, Cam Newton, under its roster of players. Newton will wear Under Armour cleats while unleashing those 50 yard bombs, and blowing past linebackers on scrambles out of the pocket. Shares closed at $70.05 yesterday, and trade at 34 times next year's earnings. There you have it, five stocks for tonight's Annual Selection Meeting. Picking one of these stocks could mean your portfolio could... go... all... the.. way!!!
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