F1 Stocks that are in Pole Position
We’re well into the 2023 F1 season, with yesterday’s Barcelona GP marking the 8th race of the year. Have you ever wondered how the sports’ sponsors are faring off-track? Today, we’re taking a closer look. After that, we’ll give you a rundown of the fundamental market events this week. Without further ado, it’s lights out and away we go!
Jumping into the F1 stock driving seat
Even if you’re an F1 super-fan, you might not know that most of the sponsors you see plastered on the side of the cars, track and everything besides are actually stock exchange listed companies.
Because of this, most of them can be actively traded. Let’s take a peek at some of the most well-known F1-associated brands that you can start trading today.
#1 Dell
F1 team: McLaren
YTD performance: +17.26%
12 month performance: -3.96%
Like many publicly listed tech companies, Dell fared pretty well during the pandemic technology boom. The post pandemic landscape has not been so good. 2022 saw stock investors losing big time. A bit like McLaren this season.
The company recently dell-ved (sorry!) into the cloud computing market which appears to have been a solid move, amid a low-demand personal computer market. That is, however, it’s core market — so we would recommend exercising caution on this one. Those +17% YTD returns do look juicy though!
DELL stock, 2023
Source: Google
#2 Santander
F1 team: Scuderia Ferrari
YTD performance: +6.67%
12 month performance: +4.75%
2023 has been a good year for Santander investors. Buying into the stock of the Spanish bank would give your portfolio exposure to three geographical regions — Europe, North America, and South America.
In the latest full-year results, Santander reported earnings growth of nearly a quarter (23%). Their Ferrari partners can only dream of similar success on-track, of course.
BNC, 2023
Source: Google
#3 Mercedes-Benz
F1 team: Mercedes AMG Petronas F1 Team
YTD performance: +11.63%
12 month performance: +7.55%
Mercedes supplies more team engines to its rivals on the F1 grid than any other constructor. In 2023, you can find its engines inside the Aston Martins, McLaren's, Williams’ and, of course Mercedes cars.
While Lewis Hamilton and George Russell attempt to keep pace in the drivers championship, off-track, things couldn’t be looking better for Mercedes-Benz. The company’s stock is trading up almost 12% this year, and over 7.5% since mid-2022.
Many analysts consider MBG stock as undervalued currently, so it might be a good time to put your foot on the Mercedes pedal and pump!
MBG stock, 2023
Source: Google
#4 Cognizant
F1 team: Aston Martin Aramco Cognizant F1 Team
YTD performance: +9.08%
12 month performance: -15.80%
Cognizant is a New Jersey-based multinational information technology services company.
Its stock has grown nicely in 2023, but it shouldn’t be ignored that it’s done so against a backdrop of massive debt. As of March 2023, the company had 646m USD of debt — about the same as the year before. But, it’s not as bad as it looks — the most recent balance sheet shows that it holds $2.48b in cash, so it actually has $1.84b net cash. Nice!
The fact that Aston Martin’s sponsor has more cash than debt, shows that it can manage its debt safely. Which is good news for current and potential investors alike.
CTSH stock, 2023
Source: Google
#5 Pirelli
F1 team: -
YTD performance: +11.25%
12 month performance: -1.09%
If you’re even a casual fan, you cannot have missed Pirelli’s sponsorship of F1. The Italian tire manufacturer supplies all teams with their rubbers and earns around $30 million from the FIA each year for doing so.
2023 looks good on Pirelli stock. Over the last few years, consumers are consistently seeking tyres with a high level of safety and grip, which is one of Pirelli’s strong points. So sales are solid.
The competition is fierce, of course, with Apollo, Dunlop, Michelin, Good Year and others all chasing. Each of these companies are currently working hard to crack the Indian market. Whoever does so will surely come out on top!
PIRC stock, 2023
Source: Google
What about you?
Do you trade any stocks of F1 sponsors? Which is your favourite? Have any let you down? Tweet us at @_contentworks to join the debate.
Top fundamental events week commencing 05.06.23
Let’s see what’s coming up this week..
Monday, 5 June
No specific events planned.
Tuesday, 6 June
● AUD — RBA Interest Rate Decision
Wednesday, 7 June
● AUD — GDP Growth Rate YoY (Q1)
● CNY — BoC Interest Rate Decision
Thursday, 8 June
● JPY — GDP Growth Annualised Final (Q1)
● EUR — GDP Growth Rate QoQ 3rd Est (Q1); GDP Growth Rate YoY 3rd Est (Q1)
Friday, 9 June
● CNY — Inflation Rate YoY (MAY)
● CAD — Employment Change (MAY); Unemployment Rate (MAY)
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Speak soon!
The Contentworks team
