Summary: The sports industry, particularly baseball, continues to flourish with increasing revenue streams from media rights, merchandise sales, and licensing. By seizing this opportunity and investing in some baseball stocks, you can potentially enjoy solid returns and capitalize on the industry’s growth potential. In this article, we will dive into some of the best baseball stocks to buy in 2024 on stock trading platforms such as eToro.
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Best Baseball Stocks to Buy in 2024
For investors looking to capitalize on the baseball industry, there are a few standout stocks you ought to consider in 2024. These companies are well-positioned within their respective niches and are likely to experience growth in the near future. They include:
- ESPN (Walt Disney Company NYSE: DIS);
- Genius Sports (NYSE: GENI);
- Academy Sports and Outdoors Inc. (NASDAQ: ASO):
- Madison Square Garden Sports Corp. (NASDAQ: MSGS);
- Liberty SiriusXM Group (NASDAQ: LSXMA).
ESPN (The Walt Disney Company)
The Walt Disney Company (NYSE: DIS): The transition from traditional broadcasting to digital streaming is becoming more apparent. Major League Baseball (MLB) has extended its reach through various digital streaming platforms, offering fans more options to watch and engage with games.
Disney’s ESPN is a major player in the sports broadcasting industry. For instance, ESPN’s deal with the MLB was valued at $550 million dollars annually in 2022, making it a significant source of income for the league. In addition, the total value of MLB’s national TV deals amounted to $1.84 billion U.S. dollars, further emphasizing the importance of these deals to the sport’s financial health.
DIS stock price today
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Genius Sports
Genius Sports (NYSE: GENI): As a sports data and technology provider, Genius Sports helps organizations like MLB improve their operations and marketing position, making it a promising stock for investors interested in data-driven aspects of the sport.
As for the stock’s growth potential, the company expects to make $9.1472 in 2024, which is a 47.54% increase from 2023. Moreover, the company announced in the summer of 2023 that it was extending its data, watch and bet partnership deal with NFL, which could make the GENI stock a good addition to your portfolio if you want to capitalize on both baseball and football industries.
GENI stock price today
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Academy Sports and Outdoors Inc.
Academy Sports and Outdoors Inc. (NASDAQ: ASO): As a retailer of various sports equipment, Academy Sports and Outdoors is in a prime position to benefit from an uptick in baseball gear sales. Their wide selection of baseball products caters to fans and athletes alike, making them an attractive investment option.
Moreover, Academy Sports & Outdoors is an S&P 600 component with a revenue of $6.4 billion as of December 2023, and the company is focusing on its new expansion projects, which could hopefully propel it further up and add to the momentum generated by recent ticket sales that made the company $6 billion.
ASO stock price today
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Madison Square Garden Sports Corp.
Madison Square Garden Sports Corp. (NASDAQ: MSGS): Known for its iconic stadiums and sports teams, Madison Square Garden Sports Corp is a potential beneficiary of the baseball industry. With a diversified portfolio in both sports teams and venues, this stock offers stability and growth potential in the long run.
The company also operates the New York Knicks and New York Rangers, which helped it generate $887 million in fiscal 2023, 8% more than the year before. Recently, the company also expressed its plans to continue providing shareholders with steady income.
MSGS stock price today
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Liberty SiriusXM Group
Liberty SiriusXM Group (NASDAQ: LSXMA) is a holding company mostly known for its huge stake in Live Nation Entertainment, a concert ticket managing and sales company, but its portfolio also features the Atlanta Braves, an MLB team, and the Formula One Group motorsports league.
Thanks to its diverse portfolio, Liberty SiriusXM Group might be a good investment for investors looking to gain exposure to both Formula One and MLB, as well as the entertainment industry. What’s more, the company has its sports stock listed on the NASDAQ separately, the baseball stock trading under the ticket BATRA. This means investors can choose which segment of the company’s business to invest in specifically.
LSXMA stock price today
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What to consider when investing in baseball stocks
When considering investing in baseball or sports stocks in general, you need to be aware of several factors that can influence their performance so that you can make more informed decisions about which stocks to buy and when to hold or sell them. They include:
- The performance of the teams and the league: If Major League Baseball (MLB) is experiencing high levels of success, interest, and attendance, it’s more likely that related stocks will perform well. Conversely, if the league is experiencing some setbacks, you’re probably better off investing in another industry;
- The financial health of the companies: To gain exposure to the basketball industry, you can invest in companies that manage teams, some advertisers, broadcasting companies with exclusive rights, etc. In other words, you can invest in a lot of different sectors. To make sure your investment is fruitful, research each company’s financial statements and evaluate metrics like revenue, profits, and debt levels;
- Sponsorships: Major announcements of new partnerships, contracts, and sponsorships involving MLB or its teams all impact the stock prices of the companies involved:
- Broader economic and industry trends: Things like changes in consumer spending habits or overall economic health can influence the amount of money the public spends on games and sports merchandise.
How to choose the best baseball stocks to buy in 2024
When looking for the best baseball stocks to invest in for 2024 and researching specific companies, you have to keep a few things in mind.
- Fundamental analysis: Start by examining key metrics such as revenue, earnings, and cash flow. Pay attention to companies with strong, consistent financial performance and positive growth trends. Also, consider factors that could impact the baseball industry as a whole. Those include labor disputes, the popularity of the sport, viewership habits, etc.;
- Timing your investment: To time your investment well, keep an eye on market trends and baseball-specific news. Also, pay attention to the broader economic climate and be prepared to adjust your investment approach accordingly;
- Evaluating future projections: Finally, it is crucial to assess the future growth potential and prospects of both baseball as a sport and the company you are investing in. That requires estimating the company’s revenue and earnings growth for the next few years. Also, consider any upcoming events that could put the company in the spotlight. That includes new TV contracts, sponsorship deals, or even potential acquisitions.
Risks of investing in baseball stocks
While investing in baseball stocks can be an exciting opportunity, it’s important to consider the potential risks involved. Being aware of these risks will help you make informed decisions and mitigate potential losses. Some of them include:
- Volatility: Baseball, like other sports, can be affected by factors such as global pandemics, and the performance of a team can depend on the well-being of a player. If games are canceled and if merchandise sales are low, the ad revenues will be lower, which can negatively impact the stock prices of related companies;
- The reliance on consumer spending: The performance of baseball stocks largely depends on the spending habits of the fans. When the economy is strong, people may be more inclined to spend money on tickets, merchandise, etc.;
- The competitive nature of the industry: Just like the teams on the pitch, companies in the sports industry constantly face competition. A decline in the popularity of baseball, or the rise of alternative forms of entertainment such as e-sports, can pose a challenge to the long-term growth and profitability of baseball-related stocks.
Conclusion
In your search for the best baseball stocks to buy in 2024, several options stand out as potential investment opportunities. However, keep in mind the importance of conducting thorough research and due diligence before making any investments. When analyzing baseball stocks, pay close attention to their financial performance, market position, and growth strategies. By doing so, you can make a better-informed decision and increase the chances of a successful investment.
In addition, remember that diversification is essential. That is, consider investing in a range of baseball-related stocks to minimize risk and gain exposure to multiple segments of the industry. Ultimately, by staying informed, evaluating your options carefully, and creating a well-balanced portfolio, your chances of success in the baseball stock market will increase significantly.
FAQs about the best baseball stocks to buy in 2024
What are baseball stocks?
Baseball stocks are shares in companies directly or indirectly related to the baseball industry. That means companies that manufacture baseball merchandise and equipment, as well as companies involved in broadcasting MLB games or managing MLB teams.
Should you invest in MLB?
Unfortunately, you cannot invest directly in MLB stock, as MLB is not a publicly traded company. However, you can invest indirectly through other sports stocks by using a brokerage account like eToro. Stocks related to MLB include broadcasting networks, equipment suppliers, and clothing companies.
Are there any risks associated with baseball stocks?
Investing of any kind is inherently risky. The performance of baseball stocks can be influenced by factors such as changes in consumer preferences, the broader economy, and unexpected events such as player injuries, etc.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
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.
-
Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
