4 Stocks to Buy Before the Tokyo Summer Olympics

stocks to buy - 4 Stocks to Buy Before the Tokyo Summer Olympics

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The Summer Olympics that get underway in Tokyo on July 23 are a global spectacle. It’s also an opportunity for investors looking for stocks to buy to benefit from an olympic pop.

The previous Summer Games held in Rio de Janiero in 2016 drew a global television audience of 3.6 billion people, making the Olympics the most watched event on the planet and a marketing and advertising bonanza for companies seeking to reach consumers around the world.

NBCUniversal, which holds the American broadcast rights, has already sold more than $1.2 billion in advertising for the Tokyo Olympic, surpassing the $1.2 billion in ad money spent on the Rio Games. That’s already a boon for parent company Comcast (NASDAQ:CMCSA).

Companies all over the world are lining up to pitch products and enhance their brand awareness as billions of people watch the Olympics through their conclusion on August 8.

Several marketing firms are forecasting that these will be the most watched Olympics ever once viewing on mobile devices is factored into the ratings. In this article, we look at four stocks to buy before the Tokyo Summer Olympics get underway.

  • Dentsu Group (TYO:4324)
  • Proctor & Gamble (NYSE:PG)
  • Coca-Cola (NYSE:KO)
  • Asics (TYO:7936)

Stocks to Buy: Dentsu Group (TYO:4324)

Close up hand holding mobile with Digital Advertising and icons, Digital Marketing concept.
Source: weedezign via Shutterstock

Although it’s not widely known in the U.S. Japanese advertising and public relations firm Dentsu is a major player in the Tokyo Olympics.

The largest ad firm in all of Japan, Dentsu has been named the lead marketing agency for the Tokyo Games.

As such, the company is responsible for marketing the Summer Olympics, and Japan, to a global audience.

Dentsu has resurrected a popular marketing campaign called “Cool Japan” to highlight Tokyo and Japanese culture during the games. The company has said it hopes to generate $1.46 billion in revenue from the campaign.

Dentsu’s participation in this year’s Olympics was not without controversy. Media reports surfaced that the advertising agency contributed $6 million to Tokyo’s bid for the Summer Games, a move some critics claim creates a conflict of interest.

Some people have gone so far as to call the payments a “bribe.” Dentsu seems to have survived the scandal and says it is completely focused on executing a successful event in the coming weeks.

Dentsu shares, which trade on the Tokyo Stock Exchange, have risen 35% year-to-date, and jumped 7% in June leading up to the Games.

Proctor & Gamble (PG)

A Procter & Gamble (PG) distribution center in Vandalia.
Source: Jonathan Weiss / Shutterstock.com

Cincinnati-based consumer goods giant Proctor & Gamble has become a major sponsor and advertiser of the Olympics over the last decade.

The company, whose brands include everything from Tide laundry detergent to Pampers diapers and Head and Shoulders shampoo, runs ads during the Olympics that focus on the sacrifices of athlete’s parents who keep the Olympians training and healthy using various Proctor & Gamble products.

For Tokyo, Proctor & Gamble plans to advertise and promote a wide range of products such as Tide, Pantene, Olay, Venus, Always and Secret.

The company will also be airing two short films that show mothers from different countries instilling lessons in young athletes. Proctor & Gamble also plans to focus on diversity and inclusion with this summer’s Olympic ads.

In the past, Proctor & Gamble has spent more than $50 million on advertisements during the Olympic Games. PG stock is down 2% year-to-date at $135.12 a share. In the last month, the share price has risen 1.7%.

Coca-Cola (KO)

a line of Coca-Cola (KO) cans
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Atlanta-based Coca-Cola is one of the biggest advertisers in the world with an annual ad budget of $4 billion.

The global beverage leader never misses a chance to undertake a marketing blitz during the Olympics.

In fact, Coca-Cola is the oldest continuous sponsor of the Olympic Games having been apart of every event for the past 92 years. In Tokyo this summer, Coca-Cola has partnered with 14 American Olympians to help it market six of its leading brands.

Viewers should watch for athletes such as swimmer Caeleb Dressel, soccer player Alex Morgan, and others, promoting products ranging from Vitamin Water to Coke itself.

Coca-Cola says it is putting a special emphasis on Powerade at the Tokyo Games, saying that the sports drink “will have its biggest-ever presence at the Olympic Games in Tokyo,” and will be featured prominently in ads involving American track and field athletes.

So far in 2021, KO stock has increased more than 2% and should open this morning around $54.

Asics (TYO:7936)

summer olympics The five ring symbol of the Olympic Games at tokyo museum and new stadium in background
Source: Chaay_Tee / Shutterstock.com

While lesser known than global sneaker and athletic apparel companies Nike (NYSE:NKE) and Adidas (ETR:ADS), Japanese sneaker and sports equipment maker Asics is hoping to make waves at the Tokyo Olympics.

The company is one of the top sports equipment company’s advertising at this year’s games. Asics has released a running shoe branded for the Tokyo Olympics and is also rolling out a series of running apparel that it hopes will catch on with consumers.

Asics is betting that a strong showing at the Tokyo Games will boost its North American sales, which rose for the first time in four years in 2019 before the pandemic hit, and led to the company’s first operating profit in five years.

Asics currently has 110 stores across North America that have been rebranded to primarily focus on selling running shoes. The company has a ways to go to catch global leader Nike, but is hopeful that it can get a boost this summer with the Olympics taking place on its home turf in Japan.

Asics stock has performed extremely well this year in the lead-up to the Summer Games, having risen 41% year-to-date. In June, the stock has increased more than 3%.

Disclosure: On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2021/06/stocks-to-buy-before-the-tokyo-summer-olympics/.

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