Summary: Investing in sports stocks can be a good passion project and a solid way to diversify your portfolio by investing in a steadily growing industry that’s now back in full swing after the recent setbacks brought by the COVID-19 pandemic. In this guide, we’re taking a look at the top 5 sports stocks to buy in 2024 on online stock trading platforms such as Interactive Brokers and eToro.
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Top 5 Sports Stocks to Buy in 2024
The sports industry is massive — we’re talking over $500 billion as of December 2023— and it works in tandem with all its adjacent industries, such as sports betting and television broadcasting, bringing a seemingly endless number of investing opportunities to the table. Down below, we have a list of the top 5 sports stocks to buy in 2024 across various segments of the industry:
- ESPN (owned by The Walt Disney Company NYSE: DIS);
- Genius Sports (NYSE: GENI);
- Academy Sports and Outdoors Inc. (NASDAQ: ASO);
- Madison Square Garden Sports Corp. (NASDAQ: MSGS);
- TKO Group Holdings (NASDAQ: TKO).
Note
1. ESPN
2023 Q4 Market capitalization: Owned by Disney, which has a market cap of $168 billion.
Short description: Sports and media conglomerate
Recommended broker: Interactive Brokers.
There have been a lot of rumors and speculations about what Disney’s plans are with ESPN. Some even thought that the Mouse might drop it entirely. However, the reality might be even more unbelievable, as Disney has announced a $2 billion deal with Penn Entertainment for the launch of a sportsbook called ESPN Bet after years of active lobbying against betting!
Why such a hypocritical turn of events? Well, ESPN used to be a money-printing machine for Disney, generating billions in revenue every year. The numbers seem to be lower these days, so Disney is likely making some moves to wake up its sleeping golden goose. Fortunately, for investors with no ethical reservations about gambling, this might open some new investment windows.
ESPN (DIS) stock performance
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2. Genius Sports
2023 Q4 Market capitalization: $1.42 billion.
Short description: Sports data and technology company
Recommended broker: eToro.
Genius Sports is a sports-focused technology and data firm offering an array of services, including data management, video streaming, and integrity solutions to sports leagues, bookmakers, and media enterprises.
The Genius Sports stock has been performing solidly. In 2023, the company’s revenue jumped by 22.1% compared to the year prior, and it was announced in the summer of 2023 that the company was extending its data, watch and bet partnership deal with NFL. This could open a new window of opportunity for both the company and the investors.
Note, though, that the top four shareholders own more than half of the company, so the stock’s performance depends largely on the decision-making of a handful of people.
GENI stock performance
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3. Academy Sports and Outdoors Inc.
2023 Q4 Market capitalization: $4.72 billion.
Short description: Outdoors-sports-oriented retail store operator
Recommended broker: eToro.
Academy Sports & Outdoors, Inc. operates a chain of sporting goods and outdoor recreation stores. Its catalog is vast, appealing to hunters, fishermen, hikers, and other outdoorsmen. If you are into any of these sports, the ASO stock might be a good way to get some exposure to them, especially since Academy Sports & Outdoors is an S&P 600 component with a revenue of $6.4 billion as of December 2023.
The company’s stock saw some growth in relative strength (RS) in August 2023, going from 67 to 76. Moreover, the company has also started its expansion projects, which can hopefully give its upwards trajectory some extra momentum generated by the recent sales that equated to over $6 billion.
ASO stock performance
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4. Madison Square Garden Sports Corp.
2023 Q4 Market capitalization: $4.22 billion.
Short description:
Recommended broker: eToro.
MSG Sports operates both in the realm of sports and entertainment, being mostly known for their ownership and operation of professional sports teams, such as the New York Knicks and New York Rangers. Actually, it was the good performance of these two teams that enabled the company to hit its record revenue in fiscal 2023, generating $887 million (8% more than the year before).
In the recent fiscal 2023 Q4 reports, the company expressed confidence in its potential to continue generating a steady income for shareholders. However, the same report is also a good indicator of how volatile sports stocks can be. Namely, in fiscal Q4 2023, the company saw a revenue of $126.9 million, 28% less compared to the prior-year quarter. The drops in revenue were, of course, the result of fewer Knicks and Rangers regular season and playoff games.
MSGS stock performance
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5. TKO Group Holdings
2023 Q4 Market capitalization: $13.67 billion
Short description: The world’s most popular pro wrestling and and MMA entertainment league
Recommended broker: eToro
TKO Group Holdings is the new big thing in the sports industry, being a merger of WWE and UFC, two so diverse yet equally as popular franchises. The merger started generating buzz months before it got realized, with investors showing both excessive caution and hype. Although some are still worried about the future of both franchises, the numbers seem positive, with UFC already reporting solid growth.
TKO stock performance
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How to buy sports stock: Step-by-step
Buying stocks
- Log in to your broker account;
- Search for the stock you wish to buy using its ticker symbol (e.g., MSG) or just type in the company name (e.g., Madison Square Garden Sports);
- Choose the order type (e.g., market, limit, stop-order);
- Specify the number of shares you would like to buy;
- Review your order one last time to make sure you did not miss anything;
- Submit your order for execution.
Pros and cons of investing in sports stocks
Pros
- It can be a good passion project, allowing you to feel an emotional connection to your investment;
- The industry is always growing and has been consistently profitable, which leads to higher return potential;
- Sports are universally loved and followed, so doing research should be relatively easy;
- A good way to diversify your portfolio, as many sports companies are involved with broadcasting, athletics apparel, etc.
Cons
- The performance of some companies directly depends on the performance of some teams, which can be inconsistent due to seemingly random factors, such as player injuries;
- Just like players on the field, major sports companies are in constant competition;
- Operating a sports franchise costs a lot, so some companies might report increased operational costs and, therefore, lower revenue;
- You might need to be exceptionally knowledgeable if you are investing in more niche sports.
The Bottom Line
Buying sports stocks is often a passion investment project for sports fans looking to combine their love for the game with their love for investing. However, as you can see from the brief discussion on some of the stocks above, the sports industry can be highly volatile, and while investing in some companies can generate profits, it is important to understand that their performance can vary from quarter to quarter, depending on a number of factors, including the general state of the industry, team performance, public sentiment, etc.
Moreover, keep in mind that the sports industry is highly sensitive to certain geopolitical events. The recent COVID-19 pandemic, for example, had a profound impact on sports. While pandemics and similar misfortunes are not common, they are always possible, so they are worth keeping in mind when investing.
Still, the future of the sports industry seems bright. It’s managed to fight its way back up after being beaten down by lockdowns and spectating restrictions, and with the growing number of online streaming platforms offering exclusive pay-per-view deals and some exciting mergers in the industry (e.g., UFC and WWE), we’re bound to see some new investment venues that will allow us to monetize our love for sports.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about the top 5 sports stocks to buy in 2024
What are sports stocks?
Sports stocks are shares in companies involved in the sports industry. That is, companies owning or managing sports teams, sports apparel and equipment manufacturers, network stations that broadcast games, etc.
Is investing in sports stocks risky?
Investing in any stock comes with certain risks. For example, the industry can be volatile, changes in fan sentiment can have profound effects on a company’s stock performance, there are regulatory challenges to keep in mind, etc.
What are the top 5 sports stocks to invest in?
The sports industry is large, so you’ll have a lot of investment options to choose from. As of 2024, some well-known sports stocks include Academy Sports and Outdoors Inc. (NASDAQ: ASO), Madison Square Garden Sports Corp. (NASDAQ: MSGS), TKO Group Holdings (NASDAQ: TKO), and Genius Sports (NYSE: GENI).
Highly Rated Stock Trading & Investing Platform
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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eToro USA is registered with FINRA for securities trading.
