Love it or loathe it, unless you’re stranded on a desert island it’s going to be hard to avoid the World Cup for the next month…
It all kicks of today with Brazil v Croatia and finishes on July 13th you can get a list of the matches here.
Stocks to trade
So let’s take a look at some of the stocks you can trade that one way or another have a world cup theme and can be traded by financial spread betting.
Sponsors/partners include Coca Cola (NYSE:KO), McDonalds (NYSE:MCD), Visa (NYSE:V), Johnson & Johnson (NYSE:JNJ) – interestingly all of them are in the DJI. Also another worthwhile shout is global brewer Anheuser Busch InBev (NYSE:BUD).
All of the above stocks are looking good, but if I had to choose one as a stand out it’s going to be healthcare giant Johnson and Johnson (JNJ) which is nearing all-time highs and up 12% this year already and even after the big run it’s on a forward P/E of 16 and pays a near 3% dividend yield. I‘ve talked about the aging population before and this remains solid on the aging and healthcare theme.
AB InBev (NYSE:BUD) is listed on the US market and can also be traded via a financial spread betting. The company’s international brands include Budweiser, Stella Artois, Corona, and Beck’s; multi- country brands consist of Leffe and Hoegaarden; with local brands primarily comprising of Bud Light, Skol, Brahma, Antarctica, Quilmes, Victoria, Modelo Especial, Michelob Ultra, Harbin, Sedrin, Klinskoye, Sibirskaya Korona, Chernigivske, and Jupiler.
Unsurprisingly The World Cup is a big deal for beer and Bud is a global player.
UK-listed SAB Miller (SAB) which continues to do well with good exposure to the African markets like Nigeria, Cameroon and Ghana all will be playing in Brazil this year.
Other shares for consideration that may be in for a World Cup windfall…
With this World Cup we have a substantial time difference issue if watching from the UK; for example our match against Italy will on the 14th June will kick off at 11pm UK (midnight European time).
Due to these conditions I think some of the other companies that will do well are those in the take away, eat at home area rather than beer.
Dominos (DOM) is the UK entity, or (NYSE:DPZ) which is the master company; stand to do very well indeed.
Domino’s has forecasted selling 6 million pizzas in June and July and needs 1300 further staff to quench demand. Dominos also has a large exposure to Germany who should manage to stay in the tournament until at least the knockout stages; obviously the longer your country stays in the tournament the better it is for sales and general feel good factor.
Also recently floated Just Eat (JE.) could see sales increase as watching football is a hungry business!
Snacks food makers should also do well, even though Pepsi (NYSE:PEP) is assumed by many as a soft drinks company today a huge percentage of its income comes from snacks and un-carbonated drinks as the company owns brands including Frito-Lay, Tropicana, Gatorade, and Quaker. UK consumers will be more familiar with Walkers and Doritos which are part of Frito Lay.
Mondelez International (NYSE:MDLZ) has been spun out of Kraft foods. If you’re planning staying up late to watch the footy coffee may well be the order of the evening or even to recover the next morning; 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. They also own Cadburys, Oreo, Milka and Ritz to name a few.
Aside from eating and drinking you also need to look the part during the World Cup and JD Sports (JD.) and Sports Direct (SPD) will do well, and if England manage to stay in longer very well indeed. An England shirt will relive you of around £60 and an official Adidas football £17 both making a goo profit margin.
The other big winners for the World Cup will be in the betting industry. With the huge advancements in mobile and tablet technology bookies offering in play betting and trading stand to do very well. Irish Paddy Power (PAP) although slightly weaker of late still remains a strong stock and I prefer them over Ladbrokes (LAD) and William Hill (WMH).