Can these World Series sponsors help your portfolio hit a grand slam if advertising boosts revenues?
One day away from the World Series and of course there's excitement to see the two best baseball teams of the regular season face off for the championship. The Red Sox and the Cardinals will battle on the field, but some World Series sponsors could also hit home runs this fall.
With the best teams going head to head, the World Series has a good chance of going to seven games. And probably very long games. They generally last about three hours and there are at least 18 breaks throughout the games. That gives Major League Baseball lots of advertising space to sell, and gives advertisers numerous opportunities to market their products.
So it's likely the bigger sponsors of the Boston Red Sox and the St. Louis Cardinals will expect a home run of their own during the series. A company like Anheuser-Busch InBev (BUD) might not be a surprise when it comes to baseball sponsors. But some other stocks in the mix might catch your eye.
We decided to screen World Series sponsors with parameters like cross-sponsorship between both pennant winners, strong earnings per share (EPS) growth for the next year, and high performance this past year. Could these stocks hit home runs for your portfolio after this world series?
Bank of America (BAC) is a sponsor of both teams which means billboards and commercials will surely include their brand during the World Series this year. The stock has an EPS growth rate of over 51% for next year, but investors aren't stampeding to it just yet. Recently, mortgage regulators began to look into charging Bank of America $6 billion in relation to sales of bad mortgages. This could hit the company's operating margins more than investors are willing to tolerate.
A possible surprise addition into our list is Dunkin' Brands Group (DNKN). The company is a major sponsor of the Boston Red Sox, and with Fenway Park hosting possibly four games this year, Dunkin' Donuts could get a lot of positive exposure. The company has a robust growth strategy and has already posted over 47% gains in 2013.
The telecom giant AT&T Inc. (T) is a major Cardinals sponsor. While the stock struggled earlier this year, it has been gaining this past week on news of a major cell tower deal and is on track to break 10% for the year. Plus the company has emphasized a focus on expansion and a recent deal with Tesla (TSLA).
And watch out for Coca Cola (KO), which will display its soft drink goodness throughout the baseball championships. The beverage company recently reported earnings that were a bit disconcerting for investors. Competitors seem to have done better at diversifying products, but Coke is still posting some impressive dividends that could benefit investors in the long-term.
Rounding out the list of World Series companies for investors to watch is Delta Airlines (DAL). The stock has been helping to prop up markets, rising over 108% year to date. But investors should be cautious of a possible profit taking sometime soon. Earnings came out today before the market opened, and Delta beat the estimates despite some previous warnings from naysayers.
So do these World Series sponsors merit a closer look? Or maybe just their advertisements are worth watching?
Click on the interactive chart to see stock performance over the past year.
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Do you think these World Series companies could be home runs for your portfolio? Use the list below to begin your own analysis.
1. Anheuser-Busch InBev (BUD, Earnings, Analysts, Financials): Engages in brewing and selling beer in North America, Latin America, Europe, and the Asia Pacific. Market cap at $158.76B, most recent closing price at $98.77.
Performance year to date at 20.09%.
EPS Growth for Next Year at 15.48%.
2. Bank of America Corporation (BAC, Earnings, Analysts, Financials): Provides banking and financial services to individuals, small- and middle-market businesses, corporations, and governments primarily in the United States and internationally. Market cap at $154.63B, most recent closing price at $14.35.
Performance year to date at 25.28%.
EPS Growth for Next Year at 51.12%.
3. Dunkin' Brands Group, Inc. (DNKN, Earnings, Analysts, Financials): Operates, and franchises quick service restaurants worldwide. Market cap at $5.03B, most recent closing price at $46.47.
Performance year to date at 47.72%.
EPS Growth for Next Year at 18.72%.
4. AT&T, Inc. (T, Earnings, Analysts, Financials): Provides telecommunication services to consumers, businesses, and other service providers worldwide. Market cap at $182.52B, most recent closing price at $33.92.
Performance year to date at 9.93%.
EPS Growth for Next Year at 7.94%.
5. The Coca-Cola Company (KO, Earnings, Analysts, Financials): Distributes, and markets nonalcoholic beverages worldwide. Market cap at $168.55B, most recent closing price at $37.91.
Performance year to date at 9.41%.
EPS Growth for Next Year at 6.55%.
6. Delta Air Lines Inc. (DAL, Earnings, Analysts, Financials): Provides scheduled air transportation for passengers and cargo in the United States and internationally. Market cap at $20.49B, most recent closing price at $24.11.
Performance year to date at 108.53%.
EPS Growth for Next Year at -2.93%.
(List compiled by Antonio Alfonso. Analysts ratings sourced from Zack Investment Research, all other data sourced from Finviz. Original article published on 10/22/2013)
Analyze These Ideas: Getting StartedRead descriptions for all companies mentioned Access a performance overview for all stocks in the list Compare analyst ratings for the companies mentioned Compare analyst ratings to annual returns for stocks mentioned Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)
Dig Deeper: Access Company Snapshots, Charts, FilingsAnheuser-Busch InBev (BUD, Chart, Download SEC Filings) Bank of America Corporation (BAC, Chart, Download SEC Filings) Dunkin' Brands Group, Inc. (DNKN, Chart, Download SEC Filings) AT&T, Inc. (T, Chart, Download SEC Filings) The Coca-Cola Company (KO, Chart, Download SEC Filings) Delta Air Lines Inc. (DAL, Chart, Download SEC Filings)
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