We are increasingly seeing some positive signs unfold on the virus front, with declining rates of infection, hospitalizations, and deaths, and some more movement on the treatment and vaccine fronts. The end of this pandemic may be in sight, at least in terms of the sense that we are in a collective crisis that shapes our daily lives week-in and week-out.
In step with that shift, we are seeing money move in the markets, with the Dow suddenly sharply outperforming the Nasdaq over the past week, and gold and silver falling sharply while interest rates start to rise, and oil companies and banks stocks break out to the upside.
All of those market signals may be telling us that the landscape is shifting and all of these undervalued stocks that have been hampered by the virus over the past six months may finally be ready to come back.
That points to outsized upside potential in industries like cruise lines, airlines, and – today’s focus – live sports.
With that in mind, we take a look at a selection of active stocks in the live sporting events space, including World Wrestling Entertainment, Inc. (NYSE:WWE), Churchill Downs, Inc. (NASDAQ:CHDN), B2Digital Inc (OTCMKTS:BTDG), and Madison Square Garden Sports Corp (NYSE:MSGS).
World Wrestling Entertainment, Inc. (NYSE:WWE) trumpets itself as an integrated media and entertainment company, engages in the sports entertainment business in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America.
It operates through three segments: Media, Live Events, and Consumer Products. The Media segment engages in the production and monetization of long-form and short-form media content across various platforms, including WWE Network, pay television, and digital and social media, as well as filmed entertainment. The Live Events segment is involved in the sale of tickets, including primary and secondary distribution; provision of event services; and sale of travel packages related to its live events.
World Wrestling Entertainment, Inc. (NYSE:WWE) just announced that Nick Khan, former Co-Head of Television at Creative Artists Agency (CAA), has been named President & Chief Revenue Officer, reporting directly to WWE Chairman & CEO Vince McMahon.
“Nick is a seasoned media executive with a deep understanding of our business and a proven track record of generating significant value for sports and entertainment properties,” said McMahon. “While representing WWE at CAA, he was instrumental in transforming our business model by securing domestic media rights increases of 3.6x over our previous agreements. Nick’s management style and personal demeanor are perfect for WWE’s entrepreneurial culture, and he will fit right in with our exceptional management team.”
If you’re long this stock, then you’re liking how the stock has responded to the announcement. WWE shares have been moving higher over the past week overall, pushing about 2% to the upside on above average trading volume.
WWE shares have been relatively flat over the past month of action, with very little net movement during that period.
World Wrestling Entertainment, Inc. (NYSE:WWE) managed to rope in revenues totaling $223.4M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -16.9%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($547.9M against $544.3M).
Churchill Downs, Inc. (NASDAQ:CHDN) bills itself as an industry-leading racing, online wagering, and gaming entertainment company anchored by our iconic flagship event – The Kentucky Derby.
The company owns and operates Derby City Gaming, a historical racing machine facility in Louisville, Kentucky. It also owns and operates the largest online horse racing wagering platform in the U.S., TwinSpires.com, and sports betting and iGaming through its BetAmerica platform in multiple states. CHDN is also a leader in brick-and-mortar casino gaming with approximately 11,000 slot machines and video lottery terminals and 200 table games in eight states.
Churchill Downs, Inc. (NASDAQ:CHDN) most recently reported business results for the second quarter ended June 30, 2020.
Highlights from the quarter include: net revenue of $185.1 million, down 61% over the prior year quarter, a net loss of $118.8 million compared to net income(a) of $107.1 million in the prior year quarter, adjusted net loss of $21.1 million, compared to adjusted net income of $115.0 million in the prior year quarter, adjusted EBITDA of $30.1 million, down 86% compared to $215.0 million in the prior year quarter, and strong performance from TwinSpires with $18.3 million of Adjusted EBITDA growth and $100.7 million of handle growth, or 21.6%, over the prior year quarter despite the rescheduling of the 146th Kentucky Oaks and Derby to September.
And the stock has been acting well over recent days, up something like 17% in that time. Shares of the stock have powered higher over the past month, rallying roughly 30% in that time on strong overall action.
Churchill Downs, Inc. (NASDAQ:CHDN) generated sales of $185.1M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -26.8% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($699M against $488.2M).
B2Digital Inc (OTCMKTS:BTDG) styles itself as the premier development league for the mixed martial arts (MMA) fighting sport. The company operates live events, pay-per-view media, gyms, and other resources to maximize the development of future stars in the MMA sport.
B2Digital operates a number of fighting events brands, including Pinnacle, HRMMA, Strikehard, and others, and has developed and deployed the systems and technologies for the operation of the B2 Fighting Series. This includes social media marketing, event management, digital ticketing sales, digital video distribution, digital marketing, PPV, FTV, merchandise sales, brand management, and financial control systems.
B2Digital owns all rights for TV, internet, social media, media, merchandising and trademarks, and branding for the B2Digital companies.
B2Digital Inc (OTCMKTS:BTDG) most recently announced its upcoming event schedule, which should be a very good sign for shareholders given that it has a strong offering on tap with 13 major events set across 5 states over the next three and a half months.
We would also note that the company has been apparently in a uniquely strong position in terms of laying a foundation for the world that comes after the virus, with a number of assets acquired on the cheap and a clear reduction in overall competition. That could position BTDG for some serious upside potential if the cards deal right from here.
If you’re long this stock, then you’re liking how the stock has responded to the announcement. BTDG shares have been moving higher over the past week overall, pushing about 113% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 257% in that time on strong overall action.
B2Digital Inc (OTCMKTS:BTDG) pulled in sales of $169K in its last reported quarterly financials, representing top line growth of 155%. In addition, the company is stocking over $75K on hand liquid cash assets.
Madison Square Garden Sports Corp (NYSE:MSGS) is a professional sports company with a collection of assets that includes the New York Knicks (NBA) and the New York Rangers (NHL); two development league teams, including the Westchester Knicks (NBAGL) and the Hartford Wolf Pack (AHL); and esports teams.
The company also owns two professional sports team performance centers, including the MSG training center in Greenburgh, New York and the CLG performance center in Los Angeles, California. Madison Square Garden Sports Corp. was formerly known as The Madison Square Garden Company.
Madison Square Garden Sports Corp (NYSE:MSGS) will host a conference call to discuss results for its fourth quarter and fiscal year ended June 30, 2020 on Friday, August 14, 2020 at 10:30 a.m. Eastern Time.
The Company will issue a press release reporting its results prior to the market opening. Speculation will be rife into the report as investors and market participants look for clues as to how a company with such an overwhelming dependence on crowd-attended events is able to cope with the present environment. With deep pockets, it may actually come out stronger as competition bites the dust and assets appear on the market for rock-bottom pricing. Time will tell.
And the stock has been acting well over recent days, up something like 5% in that time. Shares of the stock have powered higher over the past month, rallying roughly 10% in that time on strong overall action.
Madison Square Garden Sports Corp (NYSE:MSGS) pulled in sales of $424M in its last reported quarterly financials, representing top line growth of -18%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($1.4B against $886.7M).