In light of the 2022 FIFA World Cup reaching the semifinal stage, five sports apparel stocks that have high business predictability and GF Scores are Nike Inc. (NKE, Financial), Monclear SpA (MIL:MONC, Financial), Columbia Sportswear Co. (COLM, Financial), LPP SA (WAR:LPP, Financial) and Superior Group of Companies Inc. (SGC, Financial) according to the All-in-One Screener, a Premium feature of GuruFocus.
The FIFA World Cup semifinals begin on Tuesday, with Croatia taking on Argentina and France taking on Morocco. The championship match takes place on Dec. 18.
As audiences around the globe watch the World Cup, investors can also look for opportunities in sports apparel stocks that have high business predictability and a GF Score of 80 out of 100 or higher. GuruFocus’ exclusive grading system, which has been found to be correlated to stock performance based on backtesting, consists of five ranks: financial strength, profitability, GF Value, growth and momentum. Each of the individual ranks are scored from 1 to 10, with 10 as the highest score.
Nike
Shares of Nike (NKE, Financial) traded around $110.93, showing the stock is modestly undervalued based on its price-to-GF Value ratio of 0.80 as of Tuesday.
The Beaverton, Oregon-based sports apparel giant has a GF Score of 93 out of 100, driven by a financial strength rank of 8 out of 10 and a rank of 9 out of 10 for profitability, growth and GF Value despite momentum ranking just 5 out of 10.
Nike’s profitability ranks 9 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank and an operating margin that has increased by approximately 1.5% per year on average over the past five years and is outperforming approximately 82% of global competitors.
Gurus with holdings in Nike include Ken Fisher (Trades, Portfolio)’s Fisher Investments and Frank Sands (Trades, Portfolio)’ Sands Capital Management.
Moncler
Shares of Moncler (MIL:MONC, Financial) traded around 49.37 euros ($51.93), showing the stock is modestly undervalued based on its price-to-GF Value ratio of 0.82 as of Tuesday.
The Italian outerwear company has a GF Score of 98 out of 100 based on a rank of 10 out of 10 for profitability and growth, a financial strength rank of 8 out of 10 and a rank of 7 out of 10 for GF Value and momentum.
Moncler’s profitability ranks 10 out of 10 on several positive investing signs, which include a five-star business predictability rank, a high Piotroski F-score of 7 out of 9 and a gross profit margin that outperforms more than 98% of global competitors.
Columbia Sportswear
Shares of Columbia Sportswear (COLM, Financial) traded around $89.58, showing the stock is modestly undervalued based on its price-to-GF Value ratio of 0.76 as of Tuesday.
The Portland, Oregon-based outdoor apparel company has a GF Score of 96 out of 100 based on a growth rank of 10 out of 10, a rank of 9 out of 10 for profitability and GF Value and a rank of 7 out of 10 for financial strength and momentum.
Columbia’s profitability ranks 9 out of 10 on several positive investing signs, which include a 4.5-star business predictability rank and a gross profit margin that has increased by approximately 1.8% per year on average over the past five years and outperforms approximately 81% of global competitors.
Gurus with holdings in Columbia include Renaissance Technologies and Bridgewater Associates, the firm founded by Ray Dalio (Trades, Portfolio).
LPP
Shares of LPP (WAR:LPP, Financial) traded around 9,770 zloty ($2,220), approximately 44% below its GF Value. Despite this, GuruFocus’ GF Value Line labeled the Polish apparel company a possible value trap based on the company’s low financial strength rank of 4 out of 10.
LPP’s low financial strength score stems from several warning signs, which include a modest Altman Z-score of 2.34, a debt-to-equity ratio that underperforms more than 84% of global competitors, and a Beneish M-score that suggests possible earnings manipulation.
Despite low financial strength, LPP has a GF Score of 95 out of 100, driven by a rank of 10 out of 10 for profitability and growth, a GF Value rank of 8 out of 10 and a momentum rank of 7 out of 10.
LPP’s profitability ranks 10 out of 10 on several positive investing signs, which include a four-star business predictability rank, a high Piotroski F-score of 8 out of 9 and a gross profit margin that has increased by approximately 0.5% per year on average over the past five years and is outperforming more than 87% of global competitors.
Superior Group of Companies
Shares of Superior Group of Companies (SGC, Financial) traded around $9.10, approximately 59% below its GF Value. Despite this, the GF Value Line labeled the Seminole, Florida-based uniform apparel company a possible value trap due to low ranks for financial strength and momentum.
Despite the company ranking just 4 out of 10 for financial strength and GF Value, Superior Group of Companies has a GF Score of 87 out of 100 driven on a growth rank of 10 out of 10 and a profitability rank of 9 out of 10.
The company’s profitability ranks 9 out of 10 on the back of a four-star business predictability rank and 10 years of positive operating income over the past decade.
