Stanley Cup Fever: 3 Stocks to Buy as Hockey Heats Up

Group 1: Hockey Stocks Overview - A Canadian team has not won the Stanley Cup since 1993, and the last Canadian team to play in the final was the Montreal Canadiens in 2021, highlighting a long drought for Canadian teams [1] - The article focuses on selecting three hockey-related stocks for long-term investment, specifically companies that are sponsors or benefit from the NHL [1] Group 2: PepsiCo (PEP) - PepsiCo is the official sponsor of the NHL in the U.S. and Canada for various product categories, having extended its sponsorship through 2026, marking nearly two decades of partnership [3] - Over the past three years, PepsiCo's revenue and operating income grew by 9.1% and 8.6%, respectively, with a return on invested capital of 15.9% [4] - The company has a dividend yield of 3.2%, making it an attractive option for dividend investors [5] - In Q1 2024, PepsiCo reported a 1.9% increase in net sales to $1.90 billion, while operating income fell by 0.8% to $390.2 million [6] - Despite slower demand, PepsiCo expects 4% organic growth in 2024, a return to more normal growth rates [15] - Over the past five years, PepsiCo's stock gained only 28%, underperforming the S&P 500 index, which returned 86% [14] Group 3: Madison Square Garden Sports (MSGS) - MSGS's enterprise value is $5.62 billion, which is 43% less than the combined estimated value of its teams, the New York Rangers and the New York Knicks, valued at $9.88 billion [8] - The Dolan family controls 71% of MSGS stock, which contributes to a discount in share price, although the executive chairman has been recognized for enhancing shareholder value [23][20] - MSGS owns the New York Rangers and the New York Knicks, as well as Madison Square Garden, where these teams play [19] Group 4: Fastenal (FAST) - Fastenal has delivered a five-year gain of 97%, outperforming the S&P 500 by 12 percentage points [17] - The company became a Dividend Aristocrat in February, indicating a strong track record of dividend growth [18] - Fastenal is the Official Supply Chain Solutions Partner of the NHL, providing products and services to enhance the game experience [21] - Following its Q1 2024 earnings report, Fastenal's shares dropped by 12%, prompting a director to purchase $229,100 in stock [22]