Whether you are a football fan or not it’s going to be hard to avoid the World Cup over the next month and forget about this being just a sports event, this is big business that can affect GDP, consumer confidence and retail figures.
Kick-off is 12th June, where the first game sees host nation Brazil plays Croatia, and ends with the final on the 13th July. You can download a pdf chart of the World Cup games here.
World Cup stocks
So this month let’s take a look at stocks which have a World Cup related theme which can be traded using a Financial Spread Bet.
Sponsors and partners include Coca Cola (NYSE:KO), McDonalds (NYSE:MCD), Visa (NYSE:V), Johnson & Johnson (NYSE:JNJ) – interesting these four are all in the Dow Jones Index. Another notable mention is global brewer Anheuser Busch InBev (NYSE:BUD).
All of the for mentioned stocks are looking good, if I had to pick one as a stand out its healthcare company Johnson & Johnson (JNJ) which is sitting at near all-time highs and up 12% so far this year and even after the big run it’s on a forward P/E of 16 and pays a near 3% dividend yield. I have talked about the aging population in previous updates and this remains a solid play on the aging and healthcare theme.
Investing in beer…stocks
AB InBev (NYSE:BUD) has a listing on the US market and can also be traded via a financial spread bet. The company’s international brands include Budweiser, Stella Artois, Corona, and Beck’s; multi- country brands consist of Leffe and Hoegaarden; and local brands primarily comprise Bud Light, Skol, Brahma, Antarctica, Quilmes, Victoria, Modelo Especial, Michelob Ultra, Harbin, Sedrin, Klinskoye, Sibirskaya Korona, Chernigivske, and Jupiler.
The World Cup is a big deal for beer and Bud is a global player.
A notable UK-listed mention is SAB Miller (SAB) which also continues to do well with good exposure to Africa and growing markets like Nigeria, Cameroon and Ghana all will be playing in the World Cup.
Other shares that can be in for a World Cup windfall
With this World Cup we have a fairly large time difference issue for example the England v Italy game will on the 14th June will kick off at 11pm UK (midnight European time).
Therefore I think some of the companies that will do well are those in the take away, eat at home bracket rather than pubs.
Domino’s expects to sell approximately six million pizzas in June and July and requires 1,300 extra staff to meet demand. Dominos also has a large exposure to Germany who should stay in the tournament until at least a late stage which of course longer your home team stays in better it is for sales and general feel good factor.
Recently floated Just Eat (JE.) should also see sales pick up as watching football is a hungry business!
Snack food makers should also do well, whilst Pepsi (NYSE:PEP) is seen by many as a soft drinks business today most of its income is derived from snacks and non-carbonated drinks as the company owns brand including Frito-Lay, Tropicana, Gatorade, and Quaker Oats. Those in the UK will be more aware of the brand Walkers and Doritos which are part of Frito Lay.
Mondelez International (NYSE:MDLZ) was spun out of Kraft foods. If you need coffee to stay up late or to recover the next morning then chances are you will be drinking one of their brands. MDLZ has recently bought out Douwe Egberts and own Tassimo, Jacobs, Carte Noire, Kenco, Gevalia. Mondelez also own Cadburys, Oreo, Milka. LU and Ritz to name a few.
As well as eating you also need to look the part and JD Sports (JD.) and Sports Direct (SPD) will do well especially if England stays in longer. An England shirt will set you back near £60 and the official Adidas football £17 both making a nice profit margin for Sports Direct.
The final big winner for the World Cup will be betting. With the massive leaps in mobile and tablet technology bookmakers offering in game betting stand to do very well. Irish bookmaker Paddy Power (PAP) although a bit weaker of late still remains a strong business and I would prefer then over Ladbrokes (LAD) or William Hill (WMH).
Brazil remains the favourite to win the tournament current odds 3/1 with Argentina at 9/2 and Germany 11/2.