The 2026 World Cup is less than two weeks away now. So I imagine that many investors are starting to think about shares to buy for the event. After all, sporting spectacles of this scale don’t just capture eyeballs; they trigger massive, highly predictable waves of spending activity.
Looking for investment opportunities linked to this exciting event? Here are three stocks to check out.
Apparel demand will be high
One thing we always see during World Cups is heavy spending on football apparel. So, Sports Direct owner Frasers Group (LSE: FRAS) could be worth a look right now.
I expect it to see strong sales over the next few months as consumers load up on England shirts and other kit. Note that if you have a Frasers Plus account, the shirts are cheaper here than at other major retailers.
In terms of the valuation, this stock looks pretty cheap at the moment. Analysts are expecting earnings per share of 98p this year and the forward-looking price-to-earnings (P/E) ratio is only around eight. That means there could be some value on offer.
That said, there are plenty of risks here in the medium/long term including brand risk (Frasers owns a ton of brands today), ownership risk (ex-CEO Mike Ashley owns around 70% of the shares) and macroeconomic risk. So, it’s not a stock I’d go ‘all in’ on.
Booze sales will rocket
Another thing that tends to spike during World Cups is booze sales. Typically, a lot of alcohol is consumed while the tournament is going on.
This could benefit FTSE 100 alcoholic beverages powerhouse Diageo (LSE: DGE). It’s the owner of Guinness, Tanqueray, Johnnie Walker, and many other well-known names.
Now, like Frasers, there are risks to be aware of with this name. Today, many people are drinking less alcohol due to health concerns and/or GLP-1 weight-loss drugs. As a result sentiment towards the shares is weak.
Yet the stock is a long way off its highs right now (more than 50%). And at current levels, it looks pretty cheap (the forward-looking P/E ratio is only around 13). So, I think it could be worth a closer look.
What about security?
My last pick is a little more out of left field. It’s Nasdaq-listed public security specialist Axon Enterprise (NASDAQ: AXON).
I expect security to be taken very seriously during this tournament given the geopolitical backdrop. And I see Axon, which offers everything from TASERs to anti-drone solutions, as well placed to benefit.
It’s worth noting that Axon has recently mentioned that its ‘Dedrone’ solutions – which can detect, identify, track, and mitigate unauthorised or rogue drones – are going to be used to protect stadiums at this year’s World Cup. Ultimately, they’re a central part of the airspace security framework for the event.
Now, the P/E ratio here is in the 60s which adds risk. If Q2 earnings are disappointing the share price is likely to fall. However, I’m comfortable with the valuation given the company’s rate of growth with nine consecutive quarters of 30%+ revenue growth. I believe the shares are worth considering for a diversified portfolio.
Should you invest £5,000 in Diageo Plc right now?
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Edward Sheldon owns shares in Diageo, Axon Enterprise, and Nasdaq
