5 First-String Super Bowl Stocks

Super Bowl Stocks —
5 Heroes… and 5 Zeroes

There have been no problems selling big-ticket ads for this weekend’s broadcast of Super Bowl XLIV. And with good reason — this has been one of the best years for football on television, with viewership up across the board. The recent NFC and AFC championship games were the NFL’s largest combined audience for the two championship games since January 1982.

With all those eyeballs, the real winners could turn out to be the companies with the most aggressive (and the most memorable) advertising spots.

Here are five Super Bowl stocks that are doing well right now and could be doing even better after game day — and five Super Bowl stocks that you should bench.

Next — Super Bowl Stock #1

Super Bowl Stock #1 —
Coca-Cola (KO[2])

According to ad industry buzz, Coca-Cola (KO[2]) has landed two Super Bowl spots that will star characters from the Simpsons — including Kwik-E-Mart clerk Apu cheering up the miser Mr. Burns with a Coke.

Coca-Cola is already a household name, but the company is looking to push sales to the next level. I think KO can do it. The company has met or exceeded expectations for each of the last four earnings reports and should post another strong showing in February that will send shares up nicely.

Next — Super Bowl Stock #2

Super Bowl Stock #2 —
Gannett (GCI[3])

Newspaper giant Gannett (GCI[3]) owns a controlling influence in CareerBuilder.com. This online job-seeking portal is sure to see big revenue in the coming months as the employment picture brightens up and most human resource departments post their open positions. A recent Wall Street Journal survey of 56 economists concluded that 1.4 million new jobs will be created in 2010. That means big things for CareerBuilder.com.

In general, things are looking up for Gannett. Advertising for newspapers is picking up now that the recession is over, and GCI has managed to top earnings expectations for each of the last four quarters. Unlike other media companies, Gannett is strongly in the black right now and keeps posting a profit. This makes it a great buy.

Next — Super Bowl Stock #3

Super Bowl Stock #3 —
Dr. Pepper-Snapple (DPS[4])

Dr. Pepper-Snapple (DPS[4]) will put its flagship soda brand before Super Bowl audiences for the first time this year with its Dr. Pepper Cherry commercial. Spokesman Gene Simmons will offer up his tagline, “Trust me, I’m a doctor,” with the rest of his KISS bandmates in the company’s spot.

DPS has made a habit out of beating Wall Street expectations, with an average earnings surprise of 17% across the last four quarters. The company has been growing its earnings nicely as the recovery takes shape, and I expect continued success for Dr. Pepper-Snapple.

Next — Super Bowl Stock #4

Super Bowl Stock #4 —
Unilever (UL[5])

Consumer products giant Unilever (UL[5]) saw big business even during the worst of the recession thanks to its recognizable brands like Ben & Jerry’s, Vaseline and Cutex. This loyal customer base has provided a great backbone for the company’s sales and profits, and kept this stock attractive among investors.

Now that consumer spending appears to be on the mend, UL is looking to take its business to the next level with a new line of men’s products—including Dove moisturizers and bath items. Introducing this line during the Super Bowl is a no-brainer, since it perfectly targets the audience Unilever is looking to cash in on.

Next — Super Bowl Stock #5

Super Bowl Stock #5 —
Viacom (VIA[6])

The summer movie season is only a few months away, and Viacom (VIA[6]) has some big blockbusters in the works. The studio will use a number of ads during the Super Bowl to promote May’s “Iron Man 2” and July’s “The Last Airbender.” There also will be a plug for a February flick with Leonardo DiCaprio called “Shutter Island.”

The runaway success of recent release Avatar proves that Americans are still spending strongly on movies. Viacom saw tremendous success with the original Iron Man release with Robert Downey Jr., and I expect another big payday at the box office. The company’s sales and earnings continue to improve, making Viacom a great buy for 2010.

Next — 5 Super Bowl Stocks to Sell

5 Super Bowl Stocks to Sideline

On the other hand, not all the stocks paying out big bucks for Super Bowl ad spots are going to see a lift as a result. Here are five stocks having too much trouble right now for a few glitzy ads to fix.

1. Disney (DIS[7]): A “Toy Story” sequel may get a decent draw, but this entertainment giant needs a new brand to rejuvenate its bottom line and build lasting success in 2010.
2. Chrysler : I know, you can’t own stock since this company is bankrupt, but I just had to point out how doomed this company is. Without a single new vehicle to show off at the recent Detroit auto show, I think Chrysler could fold in 2010.
3. Motorola (MOT[8]): The Droid is about the only product this company makes that anyone wants.
4. Electronic Arts (ERTS[9]): The manic demand for games like Rock Band has faded.
5. General Electric (GE[10]): GE subsidiary NBC-Universal is still hurting from the very public and very messy spat between Conan O’Brien and Jay Leno. The trailer for its Robin Hood remake will just get lost in the shuffle.