Stock Super Buys for the Big Game: Under Armour Inc (UA), The Coca-Cola Company (KO)

The NFL is really weird about other people using the words “Super” and  “Bowl.” Notice that advertisements usually call Sunday’s titanic matchup between the Ravens and the 49ers as the “the Big Game.”

That’s because those NFL folks know more than just 3-4 defenses and spread offenses–they know about branding. So do the companies that are going to advertise or have product placements during the Super… errr..  the Big Game.

Under Armour Inc (NYSE:UA)Under Armour Inc (NYSE:UA)’s Thick Financial Skin

If there’s a Cinderella story in the athletic apparel industry, it’s Under Armour. The founder, Kevin Plank — a special teams player on the University of Maryland football team — started the business in his grandmother’s basement.  Nowadays you’ll see just about every player in every major sport decked out in Under Armour gear. When you look on the sidelines this Sunday, expect to see more than a few players wearing the material that’s designed to wick sweat away, rather than soak it up.  Now the company produced more than sweat-less shirts, making everything from hats to socks.

Under Armour’s stock has also been a success story.  In the past five years, the stock has soared about 176 percent. The last 52 weeks, its tracked up more than 30 percent.  The revenue also looks good for an investor seeking dependable returns. Revenue has gone up steadily each year from from $725 million in 2008 to about $1.4 billion in 2011. Earnings Per Share (EPS) has also grown in nice chunks. In 2008, the EPS was $0.38, and the latest figures, $0.92 EPS, show that the company is closing in on nearly a dollar a share EPS.

I’m trying desperately to find a competitor that matches UA, but unless you’re willing to trade Japanese and Chinese stocks, it’s pretty difficult to find a company that matches this company’s past performance and future potential.

Investing in the Pepsi Generation

I can’t imagine what a football game would be like without a PepsiCo, Inc. (NYSE:PEP) commercial. The company usually has the most talked-about commercial during the Super Bowl.  There are few companies that can duke it out with The Coca-Cola Company (NYSE:KO) in the marketing and branding department, but Pepsi is one of them.

The company has begun to shake off the free fall from the recession and is nearing an all-time high trading range.  Revenue and earnings are trending upward over the past few years. The company’s EPS has gone from $3.46 in 2008 to $4.40 in 2011. Revenue has grown from 43.2 billion to $66.5 billion during the same time period.

Pepsi’s major competition, Coca-Cola, has seen revenue rise from $31 billion to $46 billion between 2008 and 2011. The EPS for Coke has gone from $1.30 to $1.87.  Both Pepsi and Coke have P/E’s in the 19 range.

Beer Commercials, Football, and Horses

Most Americans will be gathered around the television not to see a game-winning field goal, but to watch a herd of Clydesdales boot a football, or do something else dreamed up in the fertile minds of the ad agency responsible for Anheuser-Busch InBev NV (NYSE:BUD) marketing.

Anheuser-Busch, by the way, is now an international conglomerate, called Anheuser-Busch InBev NV (NYSE:BUD), that sells about 200 different types of beer.  Those brands of beer are some of the most valuable types of brewskies in the world, and that’s the main reason for it’s smooth flow of revenue and earnings.  In 2008, the company was producing about $23.5 billion in revenue. That figure jumped to $36.7 billion a year later. It took a slight dip in 2010, but the latest figures (2011) show the company has regained revenue strength, posting over $39 billion in revenue.

EPS rates are also nice and frothy.  The EPS rate has climbed from $2.47 a share in 2008 to $4.24 in 2011.  With a P/E of 20, the stock does not look too expensive at its current valuation in the $90 range.

Now go back and enjoy the commercials…I mean the big game.

The article Stock Super Buys for the Big Game originally appeared on Fool.com and is written by Matt Swayne.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 9 Most Dangerous Countries for Tourists to Visit

Reign of Terror: The 10 Most Ruthless Politicians in History

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!