Which stocks should be monitored during the Paris Olympics? Which stocks can jump on the market? Here’s what analysts have to say.
The Paris 2024 Olympics have begun and the show will not just be sporting. Indeed, the event promises to also be a great economic and financial showcase.
The Olympic Games are expected to generate 116,000 jobs and an added value of 9.8 billion euros for the French economy, in particular thanks to expenses related to the organization. These figures represent a small fraction (0.4%) of French GDP, but the impact is expected to extend beyond 2024, with effects following the event.
Furthermore, there are several large companies in the spotlight. The listed companies that sponsor the global event can potentially earn on the stock market thanks to global visibility. Several analysts have selected some stocks to monitor during the games. What are the most promising actions during the Paris Olympics? Strategists’ analyses.
The stocks to monitor during the Paris Olympics. How to invest?
Sports-related companies are analysts’ favorites during the Olympic Games. But sponsor, betting companies, and other sectors can also shine on the stock market thanks to the Olympic euphoria.
Sponsors, for example, include large-scale companies in France such as LVMH, Air France, BNP Paribas, EDF, Orange, Sanofi, Accor, Carrefour, Cisco, and Decathlon.
However, the selection of experts ranges beyond French territory. Here are a series of actions to keep an eye on during the Games.
1. Foot Locker
According to S&P Global Market Intelligence, while fashion leader Ralph Lauren is known for designing Team USA’s uniforms, Foot Locker stands out as one of the go-to places for finding the athletic footwear you’ll see on display at the Paris Olympics.
The retailer has launched a campaign featuring immersive augmented reality experiences and in-store events celebrating the Paris Olympics. These will highlight brands such as Nike, whose elite running shoes are sure to be on display at athletics events, and Adidas, which sponsors teams from Britain, Germany, and France.
On price charts, the stock is having a tough year, down more than 15% so far, following disappointing fiscal 2023 financial results. However, CEO Mary Dillon says the company is making significant progress in its restructuring plan and is “encouraged by the innovation pipeline” occurring alongside Nike at the Paris Olympics.
UBS Global Research analyst Jay Sole admits that Foot Locker continues to face structural challenges due to growing competition from strong sports brands. However, its improving relationship with Nike in the near term and the company’s investments in technology, digital, and brand building could help improve its financial performance.
2. Draftkings
DraftKings is on the list of top sports stocks to watch during the Paris Olympics and for a reason according to experts: the company is at the center of the online betting business which is gaining more and more traction since a ruling of the Supreme Court in 2018 struck down federal bans on bookmakers.
The company is active in more than half of the US states. And, as bettors continue to discover new games and formats, there is the potential for a continued DKNG rally. One of these new formats includes betting on Paris Olympic events.
As for DraftKings shares, they have lagged the broader market so far in 2024, up about 3% on a price basis versus the S&P 500’s 14% gain. However, Wall Street remains optimistic. While the consensus recommendation of the 36 analysts following DKNG tracked by S&P Global Market Intelligence is a buy, the average price target of $51.76 represents an implied upside of 30% from current levels.
3. Comcast
Several financial analysts have highlighted the potential of the Comcast stock, the media company that has the rights to the Summer Olympics in the US and will focus heavily on its Peacock streaming platform during the two weeks. All events will be streamed on Peacock with NBC also having prime-time network coverage.
Given the time difference between the United States and the host country, France, sports fans and Olympic viewers could shell out extra money to subscribe to Peacock and get real-time coverage instead of taking the risk of seeing the results of the event before the prime-time reruns.
Argus Research analyst Joseph Bonner says not only will Comcast benefit from increased ad spending in the Paris Olympics, but also the 2024 presidential election. Bonner has a Buy rating on the services stock communication and a price target of $50, which represents an implied upside of more than 25% from current levels.
4. Airbnb
The lodging company could benefit from the Olympics, where it hosts hundreds of thousands of people during the two-week event. In June, Airbnb reported that its listings in the Paris region had increased by 40% and nights booked in the region during the Olympic Games had jumped 400% year over year.
Airbnb said at the time that more than 50% of its guests who booked trips during the Olympics were families or groups of three or more people, which could highlight the value of booking a home or apartment through the company.
Airbnb CEO and co-founder Brian Chesky reminded CNBC that “Airbnb was designed for events” when the company was founded. The estimated overall economic impact of guests coming to the Summer Olympics via Airbnb is approximately $1 billion, Chesky added.
5. Atos
Atos, as the technology partner of the Olympic Games, plays a key role in securing and digitalizing this global event.
The company has demonstrated its expertise in preparing the necessary infrastructure for the Paris 2024 Games, which could attract investor interest and have a positive impact on the Atos share price in the coming weeks. The increased visibility and association with such a large-scale event will likely strengthen shareholder confidence in the declining company.
Atos’ latest results haven’t been great. Turnover therefore recorded a decline of 2.6%. And the company’s financial restructuring continues. Will the Paris 2024 Olympics succeed in relaunching the Atos stock on the stock market, analysts ask.
6. Coca-Cola
Coca-Cola is a long-standing global partner of the Olympic Games and the company is ready to celebrate the event with an explosion of creativity and engagement.
The brand launched a national campaign in France to allow citizens to carry the Olympic Flame, thus strengthening its image of inclusion and sharing. Additionally, Coca-Cola recently announced a +15% increase in revenue.
All indicators therefore seem to confirm a rise in Coca-Cola shares on the stock market in the coming weeks, obviously subject to a favorable economic and geopolitical climate.
7. Visa
Visa is the official payment technology partner of the Paris 2024 Olympic and Paralympic Games. The company has launched an exciting initiative called “Winning Payments”, aimed at involving local businesses and their customers in the excitement of the Olympic Games.
This campaign, which promises to distribute thousands of event tickets and prepaid cards, could stimulate the use of Visa services and, therefore, have a positive impact on its stock price. Visa is also doing well with a partnership that features Visa card payments at official Olympic stores and Paris 2024 Olympic sites.
Original article published on Money.it Italy 2024-07-27 12:45:05. Original title: Come investire durante le Olimpiadi di Parigi? Le azioni da tenere d’occhio
