Which sports stocks are the best to buy?

Which sports stocks are the best to buy?

Culture

Which sports stocks are the best to buy?

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If you’re a sports fan, it’s likely that you have some knowledge of how your favorite teams or leagues operate on a commercial basis. Adverts are all over the sides of the pitch in games such as soccer, for example – and transfer windows are perfect regular reminders that there’s a big money-making side to all sorts of games. But do you feel ready to make a foray into the world of owning stocks in teams and sports suppliers? If you’re not yet up to speed, this blog post will help you to get a feel for just how best to go about working out the best sport stocks and starting a portfolio of your very own. 

Nike

If you’re not quite ready to make the big move into team stocks, with all the specific baggage and required knowledge that commitment brings, you may be more comfortable instead going for a company that supplies sports teams and fans in a more conventional way. A company such as Nike offers a perfect chance for a sports fan to bring sport into their portfolio while also dealing with a familiar company structure: Nike provides sports goods to consumers, for example, while also operating advertising functions through sponsorship and similar.

In terms of the numbers, Nike dividends have certainly risen over the years – especially in the last two decades or so. It’s worth remembering, though, that long-term investing may be required to get the returns you’d like to have. 

NFL teams – like the Cowboys

Jun 8, 2021; Frisco, TX, USA; Dallas Cowboys defensive end Randy Gregory (94) goes through drills against Dallas Cowboys tackle Ty Nsekhe (79) during voluntary Organized Team Activities at the Ford Center at the Star Training Facility in Frisco, Texas. Mandatory Credit: Tim Heitman-USA TODAY Sports

It’s also possible to invest in teams as well as businesses. If you’re looking to make an investment in a team, going for something like a side in the National Football League – which is high profile and well known – could well be the smartest move. A top team such as the Dallas Cowboys, which has a value north of US$5bn and has experienced a 43% change in value in just five years, could be a good shout.

Remember that it’s possible to invest in teams such as these without actually taking a stock. It’s possible to use derivatives, which are a type of financial instrument that tracks the underlying market and value without conveying ownership – so if it seems at first glance like it’d be too much of a hurdle to actually buy a stock, you may want to think again. 

The best trading platform types out there are those that offer this function, so make sure you search well. Finding a top-class trading platform to use is also important in order to stay safe while investing in sports stocks and to have the best experience. By choosing a platform that has great customer support, a simple interface and a glowing reputation, you’ll be all set to get the most from trading sports stocks.

Under Armour

Another sporting goods stock that you could consider buying now is Under Armour. This is a very successful firm that produces sportswear, training kit and workout wear. They have really taken off over recent years and have posted decent results, especially over the last 12 months or so. The company’s clever use of celeb endorsements, TV advertising and social media marketing has all come together to help its value really grow. 

As a sports fan, you might simply own some Under Armour kit yourself and be keen to invest in a company that you have a personal connection with! As the demand for athletic wear gets bigger as we move forward and the popularity of working out continues to rise, this is one sports stock that many predict a bright future for.

Callaway Golf Company

Apr 24, 2021; Avondale, Louisiana, USA; Callaway golf balls belonging to Billy Horschel (not pictured) on the practice green during the third round of the Zurich Classic of New Orleans golf tournament. Mandatory Credit: Stephen Lew-USA TODAY Sports

But what if you want to invest in sporting companies that make products that are fundamental to particular sports? One smart choice is the Callaway Golf Company. They seem to be another sporting corporation that has managed to not only survive recent events but prosper as well. Callaway reportedly had record net sales figures for the end of 2020 and this performance is expected to continue throughout 2021. 

As people around the world start to hit golf courses once more, the demand for Callaway clubs and products should get a real boost. It is also thought that Callaway’s ties to China (where it sources multiple products) should help it do well, in line with the double-digit growth the sporting goods sector has seen in China itself.

Investing in stocks is an option for sports fans

Each investor’s journey is likely to be different, and you’ll need to build up your own confidence before you take the plunge. By checking out some of the stocks in this article, though, you’ll be able to get an initial feel for the sector. If you also remember to choose the right platform to trade with, you will be in a great position to start your trading journey. 

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