It’s not home just yet. But England’s football team is now just one step away from securing a first major trophy for 55 years.
Victory in Wednesday night’s Euro 2020 semi-finals doesn’t just give soccer fans something to shout about, however. Taking on Italy in Sunday’s final also provides opportunities that should excite UK share investors.
Here are three UK shares that stand to gain from England’s recent achievements.
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It’s party time!
Alcohol retailers like Naked Wines (LSE: WINE) are reaping the rewards of England’s long run in this year’s European Championships. The reverie that will last all weekend (and possibly longer depending on Sunday’s result) means that they should continue to enjoy a roaring trade for the next few days at least.
It’s true that easing Covid-19 restrictions could hit Naked Wines’ revenues in the near term as people go out more. But I still think the UK retail share offers plenty of investment potential. In particular I like its focus on North American markets, and think this could deliver exceptional returns now and in the future.
Betting on England
UK gambling shares like Entain (LSE: ENT) look set to thrive whether or not England prevail in Sunday’s final.
As analysts at Hargreaves Lansdown have commented: “England’s semi-final victory will be a double cause for celebration in the Entain offices”. They describe England’s participation in Sunday’s final as an “open goal for the group” amid a boon in sports betting.
They added that “England’s long run in the tournament may well have been a contributing factor to the news that underlying cash profits are expected to beat consensus at the full year”.
The FTSE 100 company isn’t just a great pick for the short term though, as the online betting segment looks set to run and run. Entain’s online net gaming revenues rocketed 22% in the first half, with internet sales rising for 22 quarters in a row. I think this makes the UK share a great buy, despite the ever-present threat from regulators.
A top UK retail share
England shirts have been selling like proverbial hotcakes since Euro 2020 began. And demand for Three Lions-related merchandise has shot through the roof in the wake of yesterday’s semi-final victory. Naturally a win in Sunday’s ultimate game will give sales an extra shot in the arm at sports retailers like JD Sports (LSE: JD).
The FTSE 100 firm could also expect sales of boots, balls, shin-pads and other soccer-related equipment to rise after the tournament ends. This is because successful tournaments tend to drive participation in whichever sport is riding high.
While JD Sports faces extreme competition, I think the strength of its retail brand, allied with its expansion globally makes it a top UK share for the near term and beyond.
