Paris Olympics: 5 Sports-Related Stocks Going for Gold

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. 

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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.

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