Are these stocks fan favorites?
October signals that special, most rare convergence of sport. NBA basketball and NHL hockey get under way; MLB sprints into the baseball playoffs; NFL and NCAA football inspire unsettling displays of face paint. To be sure, athletic acronyms are running hot and heavy. But for that intrepid breed braving that most tactical game of all — investing — the only initials that matter are ticker symbols. Here we spotlight eight stocks connected to parking lot parties, game-day revelry and yup, vehicles with tailgates — that is, if you’re ready to play ball.
Ford Motor Co. (NYSE: F)
This maker of popular flatbed trucks such as the F-150 is thinning its roster, says Christopher Ma, director of the George Investments Institute at Stetson University in DeLand, Florida. “In 2007, Ford had 27 different platforms, 12 in 2015 and will drop to eight by 2019. Today, Ford and Lincoln are the only two remaining significant global Ford brands.” Yet the game plan hasn’t meant victory for Ford stock, down 11.5 percent over 24 months to $12 per share.
Yum Brands (YUM)
With fast-food franchise champs WingStreet and Pizza Hut, Louisville-based YUM dropped close to 27 percent in November. Yet it wasn’t a slump at all, as October saw the completed spinoff of YUM’s China-based business into Yum China Holdings (YUMC). Shareholders got one share of Yum China for every share of YUM they owned. How has it worked out? Yum Brands is up 23 percent with Yum China soaring 60 percent: in a word, tasty.
Walt Disney Co. (DIS)
Disney gets its game face on through ESPN, yet lately that property hasn’t had much in the way of bragging rights. In April, ESPN laid off 100 employees, a move extending all the way up to NFL analyst and Super Bowl-winning Baltimore Ravens quarterback Trent Dilfer. Despite slight gains in ad revenue, ESPN has weathered subscriber declines and falling ratings — enough to exert a drag on DIS stock, down 15 percent since the layoff news to $99 per share.
Domino’s Pizza (DPZ)
Like baseball’s Cardinals vs. Cubs, Pizza Hut and Domino’s represents a heated rivalry. DPZ rose 44 percent from last October to June but has since gone stale. Sluggish overseas sales dished investors a plate of crumbs with July’s quarterly earnings report: DPZ stock sank 15 percent in 72 hours. Since that missed delivery, share prices (now $199) have stayed level. But a new report comes out Oct. 12, leaving investors to bite their nails while awaiting the dough (or lack of it).
Starbucks Corp. (SBUX)
Level this past year, SBUX has more than doubled over the last five. While you take hot mochas to your next tailgate, SBUX is betting on a caffeinated equivalent in Asia. “Coffee consumption in China is growing,” says Robert R. Johnson, president and CEO of The American College of Financial Services in Bryn Mawr, Pennsylvania. In fact, it’s tripled since 2012. “Starbucks realizes this and plans on doubling the number of stores in China from 2015 to 2020.”
Papa John’s International (PZZA)
The underdog Papa John’s has been a winner over the long haul and a weakling in the shorter run. It made big sporting news in 2008, when the NBA’s Washington Wizards unveiled T-shirts mocking Cleveland Cavaliers star LeBron James. From then until now, the stock has multiplied five times and trades for $73 per share. But for 2017, PZZA is down more than 14 percent — a slide tempered only by an aggressive stock buyback plan announced in August.
Anheuser Busch Inbev (BUD)
When the price of beer goes down, sports fans rejoice; when the price of a beer stock goes down, investors cry in their brew. BUD stock spilled 20 percent between October and November 2016, though it’s since recovered lost ground. Now comes the tailgater’s wager: Three analysts label BUD a “strong buy” but four suggest a “hold.” To borrow from football parlance, should investors call for an all-out blitz or prevent defense? A game-opening coin toss may be in order.
Molson Coors Brewing Co. (TAP)
Talk about naming rights: Milwaukee’s Miller Beer is part of MillerCoors, which is in turn a subsidiary of Molson Coors. It might seem like dopey marketing to leave Miller off your corporate shingle: Miller Lite’s beloved “tastes great, less filling” ads featured famous ex-athletes. Granted, the brewing behemoth still inspires fan loyalty; Canada’s family-run Molson dates to 1786. But over the last 12 months, TAP’s 26 percent share price slide tripped up a previously uninterrupted four-year climb of 149 percent.
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Hot Off the Grill: 8 Stocks for Tailgating originally appeared on usnews.com
