Since the Stanley cup playoffs have just recently come to a close and with fall bringing the start of the cold weather I figured this would be a good time to talk about some hockey related stocks. Unfortunately hockey is a lot like racing in that there are relatively few opportunities to directly own any hockey teams, as most of them are private. The most notable exception to this is Madison Square Garden Co (MSG), which owns the New York Rangers and their AHL affiliate as well as the New York Nicks. This is the only stock available to buy that completely owns a franchise. The other stocks I would like to talk about are Daktronics Inc. (DAKT), Columbia Sportswear Co (COLM), Electronic Arts (EA), Dicks Sporting Goods (DKS), BCE Inc. (BCE), and Comcast Corporation (CMSA).
Madison Square Garden Co (MSG) also owns Madison Square Garden aside from the sports teams they own. I will not talk about them too much as I basically described them in the first paragraph. Madison Square Garden Co is basically split into 3 companies stock wise. Madison Square Garden Sports Corp (MSGS), Madison Square Garden Entertainment (MSGE), and Madison Square Garden Networks (MSGN). If you are looking to own a small part of the NY Rangers you will want to be looking at MSGS.
Madison Square Garden Sports Co (MSGS)- Current Price $149.96, Market Cap $3.60Billion, 52 week range $130.12-316.39, EPS- $-4.8575, They do not pay a dividend.
Daktronics Inc. (DAKT) is a manufacturer and supplier of billboards and video displays for sports. 17 of the 31 NHL facilities use Daktronics equipment for the scoreboards and displays at their arenas. They also provide scoreboards and displays for minor league sports and for basically every sport you can think of professional and minor league.
Daktronics (DAKT)- Current Price $4.19, Market Cap $186.94 Million, 52 Week Range $3.69-$7.34, EPS $0.0216, P/E Ratio 193.98, They do not pay a dividend
Electronic Arts (EA) really doesn’t need a description but on the off chance you don’t know, they are a video game company largely responsible for most major sport games from the NHL to FIFA, as well as many other games including Star Wars. They have been the only gaming company making NHL games for a long time now (since 2011 when NHL 2K stopped being made).
Electronic Arts (EA)- Current Price $130.88, Market Cap $37.8 Billion, 52 week range $85.69-$147.36, EPS $6.74, P/E Ratio 19.41, They do not pay a dividend.
Dicks Sporting Goods (DKS)- is a retailer of sporting goods of all kinds including hockey. I wrote about them in July, at that time they were $41 per share. I said at that time that I probably wouldn’t look too hard at them at the time. They are currently worth $60.70 per share so shows what I know lol.
Dicks Sporting Goods (DKS)- Current Price $60.73, Market Cap $5.41Billion, 52 week range $13.46-$62.84, EPS $2.882, P/E 21.07, Dividend $1.25, Yield 2.06%
BCE Inc. (BCE)- Bell does not need too much said about it. They are one of the 3 biggest cell phone providers in Canada as well as a cellphone and Internet provider. Bell also owns Crave TV. The last 2 things Bell owns that make it important to this article are that they are 50% owners of Maple Leaf Sports and Entertainment along with Rogers Communications. This holding includes the Toronto Maple Leafs and Toronto Raptors. Bell is also part owner of the Montreal Canadiens.
BCE Inc (BCE)- Current Price $55.70, Market Cap $50.37Billion, 52 Week Range $46.03-$65.45, EPS $2.707, P/E Ratio 20.57, Dividend $3.33, Yield 5.98%
Comcast Corporation (CMCSA)- Is the second largest broadcasting and cable television company in the world and largest home Internet provider. Comcast also owns DreamWorks, Illumination and Universal. They are also owners of the Philadelphia Flyers and their home arena.
Comcast Corporation (CMCSA)- Current Price $45.99, Market Cap $210.09Billion, 52 Week Range $31.71-$47.74, EPS $2.494, P/E 18.44, Dividend $0.92, Yield 2.00%
At this point in time there are a few of these stocks that I probably wouldn’t even look at right now for various reasons. Madison Square Garden sports I wouldn’t look at right now due to their negative earnings per share as well as the fact that they don’t pay a dividend. Covid is really hurting most entertainment related stocks right now and who knows when hockey will be back to normal so I would probably leave that one alone for now. Daktronics I would also probably not look at right now either. They are making money, but they are also a small cap company with a very high price to earnings ratio and do not pay a dividend. They have decent upside potential but are relatively high risk as well.
Pretty much all of the other stocks I listed would all be decent companies to look at potentially. They are all diverse enough to weather Covid with the exception of EA but their market will likely remain relatively unaffected by Covid. All of them also pay fairly good dividends, also with the exception of EA who does not pay a dividend. Comcast and EA both have P/E ratios below 20, which is a good thing (the lower the better usually). Comcast also pays a 2% dividend, which is nice. Dicks Sporting Goods and Bell both have P/E ratios above 20, which is not as ideal, but Bell makes up for this with almost 6% dividend yield. Dicks also pays a 2% dividend currently, but was a much better buy 3 months ago when I said I would probably not look at them at that time (oops). While they are still a decent buy, I would probably wait to see if the price drops a bit before I started to look hard at them again.
I hope this gives you some ideas of some hockey related stocks you could look at buying. Thanks for reading.
Disclaimer: I am currently long on Bell. I do not have a position in any of the other stocks mentioned in this article. All stock prices are as of October 12,2020