Thinking of investing in sports stocks? Holding stocks of various active companies is a good strategy. Many investors encourage people to achieve a profit in industries like technology, energy, education, and healthcare. Nowadays sports is no more ignored industry when it comes to putting money into financial schemes. When you look at the sports equipment and apparel, you can see some real winners. Since there are countless companies selling stocks, investing in the best one can be a challenging and dreadful task. In this article, we have mentioned the sports stocks you must be investing in. Have a look!
One of the best sports stocks to buy is of Foot Locker. It has exceeded expectations with its consistent delivering and top and bottom-line growth. It has a great financial foundation with a remarkable record of earnings-per-share and reasonable debt levels.
Many investors recommend not to invest in their stocks as they focus on footwear. The lack of diversification is the reason people are not willing to take part in this. Another reason is its low-profit margins.
Those who are looking for steady and slow growth, usually choose Foot Locker as an ideal choice. They promise more ambitious growth of stocks in coming years. Over the years, the free cash flow yield has increased up to 12.6%.
Another quite a great sports stocks to invest in is Lululemon. People want to be a part of community and Lululemon is among those companies that understand this aspect. It is a yoga-inspired athletic wear brand that has the ability and the culture to retain customers. This has helped them achieve top-line growth. The net revenues increased by 16%.
Most of the net sales were because of the relaunch of its website. One of the ways to capture recurring customers is by keeping a collection updated. This helps in enhancing the shopping experience. Lifestyle and athletic apparel can lead to a strong financial position.
On the other hand, the adjusted earnings per share were boosted by 33%, after the increase the value reached $1.33. Additionally, the operating and gross margins increased by 290 and 200 base points.
In 2017, the stock was at $78.71 and the next day, the stock was 10% higher. Within 6 months, the stocks have increased by nearly 23%. For the first time since its inceptions, the stocks closed trading at $100.
Hence, great sports stock to play is of Lululemon as the company will be growing in the years to come. Experts state that the surge in valuation will not stop anytime soon and it will be a steady climb.
Churchill Downs, Inc.
The company owns the Kentucky Derby racetrack, three other ones and organizes the famous horse race. The revenue is generated from food and beverages sales and betting.
It runs an online and mobile horse wagering business. The business is more diverse than many investors realize. Thus, it can be said that the sport stocks performance has never been bad. Since 2009, the company didn’t have a negative annual return and currently, it has increased by 9%.
Nike is another outstanding variant. Despite the problems related to corporate culture, the company has been making changes to make sure the upper management is diverse. These changes are an attempt to remain respected by the customers and to maintain its reputation as a great global brand.
Though it faced some challenges in the sales of footwear in North America, it did well in the rest of the world. In China, the growth was 19%, in EMEA – 9%, and in Asia/Pacific & Latin America – 11%.
There are not many sports teams popular in North America, but Liberty Braves is an exception. Thanks to the Liberty Media, you can own a piece of Atlanta Braves by investing in the Liberty Braves. In 2017, the revenue of the baseball team increased by 47% to $386 million. The increase in revenue was generated through sales of individual seats, beverages, food, and corporate boxes.
The company opened only 70% of the is the first phase and mentioned that the rest 30% will open in 2017. The company can generate a healthy revenue from both the phases.
Not many people know that Walt Disney owns the worldwide leader in the sports industry, ESPN. According to some experts, investing in the sports stocks of Walt Disney is more negative than positive. This is because they believe that the impending collapse of the network will be damaging for their business.
However, the brand ESPN is not going anywhere soon. It is anticipated that the news channel will have a strong control over the sports industry, irrespective of the medium, online or cable television.
When you do make up your mind to make investments, you should undertake a little investigation and consider all the pros and cons to stay safe.