Paris Olympics: 5 Sports-Related Stocks Going for Gold
Tactical investors may want to keep an eye on these sports-related stocks with the Paris Olympics underway.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
The Paris Olympics are officially underway, which has many on Wall Street wondering if there's an angle investors can take on the international sports event. When it comes to the best sports-related stocks, there's admittedly not as wide a variety for investors to choose from as say those seeking out the best tech stocks or the best financial stocks.
And most professional teams are owned by a small group or even a single wealthy individual. While some teams such as the Atlanta Braves Holdings (BATRA) or New York Knicks parent Madison Square Garden Sports (MSGS) are publicly traded franchises, they are the exception, not the rule.
That said, there are still creative ways investors can gain exposure to the Paris Olympics. These include companies such as Nike (NKE) and Adidas (ADDYY) that produce the apparel and footwear many athletes wear.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
There are also more under-the-radar names that use the Paris Olympics to draw awareness to their brands. Indeed, with "a viewership of 3 billion+, the Summer Olympics are a significant catalyst for sports and sportswear globally, driving more awareness of and interest in sport and performance across a broad base of categories and countries," says a team of analysts at Bernstein Research.
With that in mind, here are five sports-related stocks investors should watch as the Paris Olympics get underway. Data is as of July 26. Analysts' consensus recommendation courtesy of S&P Global Market Intelligence.
Foot Locker
- Market value: $2.5 billion
- Analysts' consensus recommendation: Hold
While fashion leader Ralph Lauren (RL) is well-known for designing the Team USA uniforms, Foot Locker (FL) is one of the go-to destinations to find the sports footwear you'll see on display at the Paris Olympic games.
Additionally, the retailer launched a campaign that features immersive augmented-reality experiences and in-store events celebrating the Paris Olympics. These will highlight brands such as Nike, whose elite running shoes will surely be on display during the track-and-field events, and Adidas, which is sponsoring teams teams from Great Britain, Germany and France.
On the price charts, the consumer discretionary stock is having a rough year – down more than 15% so far – following dismal fiscal 2023 financial results. However, CEO Mary Dillon says the company is making significant progress in its turnaround plan and is "encouraged by the pipeline of innovation" occurring alongside Nike at the Paris Olympics.
UBS Global Research analyst Jay Sole (Neutral, the equivalent of Hold) admits Foot Locker continues to face structural challenges due to increasing competition from strong athletic brands. However, its improving relationship with Nike in the near term and the company's "investments in technology, digital, and brand building may help improve its financial performance."
Dick's Sporting Goods
- Market value: $17.0 billion
- Analysts' consensus recommendation: Buy
Of course, if Foot Locker is the place to get your sports-related kicks, then Dick's Sporting Goods (DKS) is the place to get just about everything else you need for the field, the court or anywhere else you're getting your heart rate up.
As the largest sporting goods retailer in the U.S., DKS boasts nearly 900 total locations and is a mainstay of many athletic communities. It's also one of the best stocks on the price charts, up 60% in the last 12 months thanks to strong earnings – including May's fiscal Q1 report that showed impressive same-store sales. That's a good sign as we enter a busy stretch for sporting events in the summer and fall.
Wall Street is bullish on DKS stock too. Argus Research analyst Chris Graja, for one, has a Buy rating on Dick's Sporting Goods, saying the company's recent 10% dividend hike reflects management's "deep confidence in the business as well as an ongoing focus on delivering shareholder value." Over the past five years, DKS has been one of the best dividend stocks for dependable dividend growth, having raised its payout at a compound annual rate of 32%, he adds.
Topgolf Callaway Brands
- Market value: $2.9 billion
- Analysts' consensus recommendation: Buy
Golf is one of the more mainstream Olympic sports, and the world will be watching this year as Team USA looks to defend the men's individual gold won by Xander Schauffele in Tokyo back in 2020.
The sport has struggled to maintain the popularity it has had in past decades. Still, Topgolf Callaway Brands (MODG) is looking to revive interest by providing a more accessible and high-tech experience via its high-tech driving ranges that welcome new golfers.
The small-cap stock is generally choppy. This is due in part to the fact that its 100 or so Topgolf sports entertainment venues represent about 40% of revenue for the corporate parent, which also specializes in golf gear and apparel. While there has been buzz around a possible spinoff deal that would make Topgolf independent and more focused on the growth potential of its unique experience in the years ahead, the company said in March that no such plan is in the works.
DraftKings
- Market value: $17.3 billion
- Analysts' consensus recommendation: Buy
Why is DraftKings (DKNG) on this list of the best sports-related stocks to watch during the Paris Olympics? It's because the company is at the center of the online betting business that has been steadily picking up steam since a 2018 Supreme Court ruling overturned federal prohibitions on sportsbooks.
The company is active in more than half of U.S. states. And, as bettors continue to learn about new games and formats, there is the potential for continued upside in DKNG. One of those new formats includes betting on the Paris Olympic events.
As for DraftKings stock, it has lagged the broader market so far in 2024, up roughly 3% on a price basis vs the S&P 500's 14% gain. Still, Wall Street remains upbeat. While the consensus recommendation of the 36 analysts following DKNG tracked by S&P Global Market Intelligence is a Buy, the average price target of $51.76 represents implied upside of 30% to current levels.
Comcast
- Market value: $153.8 billion
- Analysts' consensus recommendation: Buy
ESPN, which is owned by Walt Disney (DIS), is one of the most iconic brands in sports broadcasting. However, Comcast (CMCSA) has quite a reach of its own – including via its subsidiary NBCUniversal, which owns exclusive media rights to the Olympic Games through 2032.
What's more, Peacock, the streaming service owned by Comcast, has the potential to deliver coverage, highlights, and on-demand experiences of the Paris Olympics more broadly than just watching the events on TV. And the reach could be wide, considering Peacock had 34 million paid subscribers at the end of Q1.
Argus Research analyst Joseph Bonner says not only will Comcast benefit from increased ad spending around the Paris Olympics, but also the 2024 presidential election. Bonner has a Buy rating on the communication services stock and a $50 price target, representing implied upside of more than 25% to current levels.
Related content
-
The New Reality for EntertainmentThe Kiplinger Letter The entertainment industry is shifting as movie and TV companies face fierce competition, fight for attention and cope with artificial intelligence.
-
Stocks Sink With Alphabet, Bitcoin: Stock Market TodayA dismal round of jobs data did little to lift sentiment on Thursday.
-
Betting on Super Bowl 2026? New IRS Tax Changes Could Cost YouTaxable Income When Super Bowl LX hype fades, some fans may be surprised to learn that sports betting tax rules have shifted.
-
Stocks Sink With Alphabet, Bitcoin: Stock Market Today
A dismal round of jobs data did little to lift sentiment on Thursday.
-
The 4 Estate Planning Documents Every High-Net-Worth Family Needs (Not Just a Will)The key to successful estate planning for HNW families isn't just drafting these four documents, but ensuring they're current and immediately accessible.
-
Love and Legacy: What Couples Rarely Talk About (But Should)Couples who talk openly about finances, including estate planning, are more likely to head into retirement joyfully. How can you get the conversation going?
-
How to Get the Fair Value for Your Shares When You Are in the Minority Vote on a Sale of Substantially All Corporate AssetsWhen a sale of substantially all corporate assets is approved by majority vote, shareholders on the losing side of the vote should understand their rights.
-
Dow Leads in Mixed Session on Amgen Earnings: Stock Market TodayThe rest of Wall Street struggled as Advanced Micro Devices earnings caused a chip-stock sell-off.
-
How to Add a Pet Trust to Your Estate Plan: Don't Leave Your Best Friend to ChanceAdding a pet trust to your estate plan can ensure your pets are properly looked after when you're no longer able to care for them. This is how to go about it.
-
Want to Avoid Leaving Chaos in Your Wake? Don't Leave Behind an Outdated Estate PlanAn outdated or incomplete estate plan could cause confusion for those handling your affairs at a difficult time. This guide highlights what to update and when.
-
I'm a Financial Adviser: This Is Why I Became an Advocate for Fee-Only Financial AdviceCan financial advisers who earn commissions on product sales give clients the best advice? For one professional, changing track was the clear choice.
