With the U.S. and the rest of the world getting soccer (well, football for the international audience) crazy, investors ought to consider intriguing Women’s World Cup 2023 stocks. As heated rivalries and a chase for history underline the quadrennial tournament, the event serves as an excellent marketing platform. And certain enterprises are better prepped to benefit than others.
Fundamentally, major sporting events may help economically catalyze industries such as tourism. In addition, star players eventually emerge from tournaments, leading to backend gains. For instance, apparel companies may see an uptick in demand because of winning teams sporting their kits. As well, media-related enterprises can blossom based on the drama on the pitch. Therefore, sports-event-impacted stocks can definitely win out.
Plus, this year’s edition will dramatically boost representation. With the organizing body FIFA expanding the tournament to 32 teams – thus matching the men’s edition – viewers will have more chances to see the wider evolution of the women’s game. Win or lose, the dramatic lift in diversity may do wonders for companies.
On that note, below are the stocks benefiting from the Women’s World Cup.
Women’s World Cup 2023 Stocks: Nike (NKE)
As the official apparel maker of the U.S. Women’s National Team kit, Nike (NYSE:NKE) is a no-brainer when it comes to Women’s World Cup 2023 stocks. Sure, it’s just one team but let’s face it. Most other countries simply lack the resources to invest in the women’s game. Still, the U.S. side represents the benchmark and Nike will gladly ride coattails.
Since the team’s historic win in the 1999 edition, the ladies that wear the red, white, and blue have become celebrated sports heroes, a framework that doesn’t always translate in other (patriarchal) countries. However, this paradigm may change over time. If so, Nike would have played a significant role in bringing about this positive pivot. Therefore, it’s one of the sports-event-impacted stocks.
To be fair, Nike doesn’t exactly offer a discount to investors. Presently, shares trade at a forward earnings multiple of nearly 29, which is quite rich. However, the company prints a very solid three-year revenue growth rate (per-share basis) of 11.6%. As well, it’s consistently profitable, yielding a case for stocks benefiting from the Women’s World Cup.
Alphabet (GOOG, GOOGL)
At first glance, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) might not immediately stand out as one of the Women’s World Cup 2023 stocks. However, people will be scouring for information about the tournament on the internet. Considering that Alphabet’s Google search engine dominates the underlying industry with 92.64% market share (at time of writing), it’s a safe bet most folks will Google what they’re looking for.
That’s an indirect benefit. Another reason why GOOG could be one of the sports-event-impacted stocks centers on a broadcasting dispute. Long story short, a sharp disagreement between two media giants will result in World Cup games essentially being blacked out for many viewers across the country.
However, that’s where Alphabet’s YouTube TV might enter front and center stage. Indeed, the parent company has been pushing accessibility to the tournament as a key selling point. Depending on various circumstances and pricing structure comparisons, Alphabet might succeed in sparking an exodus toward YouTube TV. And if you don’t like the angle of stocks benefiting from the Women’s World Cup, you can appreciate Alphabet’s growth machine and profit predictability.
Unilever (UL)
When it comes to holistic messaging, Unilever (NYSE:UL) may be one of the top Women’s World Cup 2023 stocks. First, on a business note, Unilever is one of the sponsors of the soccer tournament. As well, it represents a relevant consumer packaged goods powerhouse. From culinary delights like Magnum ice cream to Dove personal care and beauty products, Unilever appeals to the female audience.
Second and just as importantly, Unilever has been at the forefront of pushing for diversity and equity. Back during the social lessons forwarded during the Covid-19 crisis, management responded with various initiatives encouraging equality. As for gender relations, Unilever promotes gender equality and women’s empowerment throughout its value chain. It’s almost certain that the expanded field in the Women’s World Cup plays into the corporation’s messaging.
On a fundamental note, Unilever products largely represent necessities as opposed to luxuries. Therefore, should economic challenges arise, UL should perform relatively well. Plus, it’s offered at a discount, trading at an earnings multiple of only 14.98.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
