It’s almost turkey time, but Thanksgiving means more than stuffing yourself and enjoying leftovers for a week. But it’s also time for football. And this makes it a great time to look at football stocks.
Think about it. It’s a national tradition to eat as much as possible before crashing on the couch to watch a game, likely while enjoying a turkey sandwich or two. But if you’re looking to score big within your portfolio, a handful of NFL-related stocks are positioned to capture that enthusiasm too.
While the NFL and other sports leagues are held privately by the mega-rich, sponsors and peripheral NFL stocks offer exposure to the league’s continued popularity. These are three of those football stocks that could help you score big this Thanksgiving.
Nike (NKE)
Nike (NYSE:NKE) is consistently one of the NFL’s biggest sponsors, creating uniforms for teams and endorsing specific athletes alike. The company is in a downtrend, losing more than 10% since January. But its fundamentals are strong, which sets this NFL stock up for a comeback.
The company, known for its athletic footwear and apparel, reported a 2% increase in revenue for its fiscal first quarter, reaching $12.9 billion, slightly below the anticipated $13 billion. However, Nike’s earnings were notably strong at $0.94 per share, surpassing the expected $0.76.
Nike’s reassurance to investors about its fiscal second-quarter and full-year forecasts has also been positively received. The company expects mid-single-digit revenue growth for the full year, aligning with analysts’ projections. A significant highlight was the 10% reduction in Nike’s inventory levels compared to the previous year, addressing the high inventory issues it faced post-COVID-19 pandemic. Additionally, the company’s sales in China showed a promising 5% increase year-over-year.
Caesars Entertainment (CZR)
Caesars Entertainment (NASDAQ:CZR) is an official NFL partner, giving gambling enthusiasts an opportunity to wager on their favorite team. But betting on this football stock can also pay off for your portfolio. Caesar’s also offers investors an opportunity to jump into hotel and entertainment stocks beyond its benefit as a football stock.
The company’s three-year growth rate is a healthy 16.5%, indicating the company has mostly rebounded from pandemic shutdowns and travel slowing. Shockingly, the company trades at just 0.87x sales, indicating undervaluation and potential that isn’t yet priced in. Morningstar (NASDAQ:MORN) analysts peg the company’s per-share price at a whopping $80, a sum nearly twice what it trades at today.
Caesars Entertainment is a great speculative NFL stock since the overall entertainment industry tends to be volatile and cyclical. Still, going into Thanksgiving and a busy holiday season substantially undervalued could mark big things for this Vegas kingpin.
DraftKings (DKNG)
DraftKings (NASDAQ:DKNG) is another safe bet for football fans. After a choppy few years, this at-home gambling stock is back on an upswing. Its Q3 report was strong, indicating substantial upside opportunities ahead.
The number of monthly users for DraftKings hit 2.3 million, up from 1.6 million in 2022. Likewise, the company reported revenue increasing by 57% year-over-year, beating expectations for Q3. To that end, management bumped its 2023 revenue expectations by $100 million, likely anticipating a surge in activity for Thanksgiving.
Analysts mark DKNG as a buy. One firm, Truist (NYSE:TFC), sets its price target at $44 – indicating further growth from current pricing. Institutional investors are also bullish on DKNG. BlackRock (NYSE:BLK) acquired 2.3 million shares of DKNG in August, marking nearly 15% in ownership. Consequently, many institutional investors are either significantly investing in or elevating their outlook on DraftKings, reflecting confidence in its robust performance and promising growth prospects.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.