3 UK stocks more likely to win at World Cup than England. Should I buy?

England are unlikely to win the FIFA World Cup 2022. No problem. I can still be a winner by adding these UK stocks to my portfolio.

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Football remains big business and the World Cup is still the most-watched sporting event on the planet. Though the national team is the focus, companies tend to come out as winners during and after the tournament. Many will be rubbing their hands at the thought of a revenue boost regardless of any advertising spend. I have three UK stocks in mind that fit this profile.

The UK stock key players

The first of these UK stocks is ITV PLC (LSE:ITV). I expect the company to receive a much needed revenue boost from broadcasting the FIFA World Cup. The broadcaster’s valuation received a high-profile lift during and following the last European Championships in 2020. However, management are not so confident this time. The shares fell steeply after it forecast a lukewarm revenue uplift from airing the World Cup. Nevertheless, I believe it is a stock that tends to build momentum after such televised bonanzas.

Furthermore, I think Frasers Group PLC, through its brand, Sports Direct, could see an increase in sales over the tournament period. Whether England do well or not, general footballing goods sales could be turbocharged. As the CEO noted following the 2010 World Cup, “results clearly show that [we] had a good World Cup”. I expect the same again.

Finally, Domino’s Pizza Group PLC has also been catching my eye. The share price, as well as its trading revenue, received an uplift during the last major tournament. It is the case again this year with people similarly gorging on pizza takeaways. The share price is up 20% over the last month alone as World Cup fever has hit.

Robust fundamentals

Though I view these UK stocks as World Cup winners in the short term, the long-term picture is positive too.

In Domino’s case, its nationwide tie-up with delivery group Just Eat enhances its market foothold. There are signs the partnership has already increased its share of the UK takeaway market.

Moreover, Frasers Group’s strategy of growing its market share by snapping up well-known brands at dirt cheap prices has put the company in the position to continue thriving despite a difficult retail backdrop.

Meanwhile with ITV, the price-to-earnings multiple of its shares is just six times 2023 earnings – excellent value relative to its peer group. This is in addition to an 8% dividend yield (based on the expected pay out for 2022). Both factors suggest considerable value to me.

What if England win?

These are my pick of the UK stocks likely to lay golden eggs from the World Cup regardless of the results. But what if England actually win?

Research from leading wealth manager, JM Finn, reveals that the countries that won the last four World Cup football tournaments had an uplift in consumer confidence during the month in which they lifted the World Cup.

In the event England lift the trophy, the domestic markets may indeed be in for a much needed boost. Regrettably, victory is unlikely. Therefore, focusing on the potential UK stock winners is a better option for me.

Sure, the stocks I have cited can gain momentum from the tournament. But crucially, they all have robust long-term fundamentals. I will not be buying any of them just yet, but all three are high on my watchlist to buy before the tournament concludes.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Henry Adefope has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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