Three Plays on March Madness
As March Madness sweeps the nation. Here are three companies that traditionally benefit greatly from the big business of March Madness, and whose stocks are already trending in the right direction, explains Chris Preston, editor of Cabot Wall Street Best Daily.
Buffalo Wild Wings (BWLD)
With 1,175 locations nationwide, Buffalo Wild Wings is the convenient sports bar of choice. All those March customers make for good first-quarter sales.
Buffalo Wild Wings did $508 million in revenue in the first quarter a year ago, 3% higher than any other quarter in 2016. Analysts are expecting $535 million in sales this quarter, which would be a 5.4% year-over-year increase and the biggest yet for Wild Wings.
Buffalo Wild Wings stock has been sliding of late, falling to $150 since hitting a 52-week high at $174 in December. But last April, BWLD bottomed at $129 before reporting record earnings late in the month, which pushed the stock up to $148. Fueled by another big March, perhaps next month's earnings report will ignite another big run-up for Buffalo Wild Wings stock.
The broadcast network has been airing the NCAA Tournament since 1982, and last year it extended its current, joint TV deal with Turner Sports through 2032 by shelling out a combined $8.8 billion for the rights.