Sports companies

This week marks the commencement of one of the biggest sporting events in the world: the Olympic Games. This grand occasion provides the perfect backdrop to analyze companies active in the sports industry. With the spotlight on athletic excellence, it’s an ideal time to evaluate the performance of businesses driving the sports economy.

A Diverse Selection of Global Sports Companies

We present a selection of 10 companies—5 American, 3 European, and 2 Asian—to compare their performance over both medium and short terms.

Medium-Term Performance: 4-Year Overview

Over a 4-year period, a significant correction in 2022 stands out [black arrow], followed by a period of sideways movement[blue arrow].

Short-Term Performance: 1-Year Focus

It’s crucial to examine short-term trends, as a stock should consistently demonstrate strength in the short term.

This detail, often overlooked, is pivotal for informed decision-making.

Focusing on a 1-year period, we identify four standout stocks, representing each continent, and analyze their potential.

This highlights the importance of a balanced approach, considering both medium and short-term trends to gain a good understanding of stock performance.

Analytical Tools: Hull Moving Average (HMA) and Auto Pivots

For this analysis, we utilize the Hull Moving Average (HMA) and our automatic pivots:

• HMA: This tool is based on the weighted average, with the direction of the average being crucial. A green HMA indicates positive momentum, which is a desirable signal.
• Auto Pivots: This feature analyzes the chart to highlight key pivots—blue for resistance and orange for support—providing clear indicators of potential price movements.

Analyzing Top Performers

Adidas (Europe)

Adidas stands out with a green HMA, indicating strong upward momentum. Its price is in the upper right of the chart, a robust position signaling strength.
Adidas is nearing a pivotal point: a breakout is very positive and suggest potential confirmation of its strength.

Shimano (Asia)

Shimano also boasts a green HMA, with its price around the midpoint of the chart: a crucial zone.

The 170 mark shows significant resistance pivots, indicating key levels to watch.

Columbia Sportswear (America)

Columbia Sportswear’s HMA has just turned green, signaling a positive shift.

However the 84 zone marks the first critical test. The stock is currently moving sideways, suggesting a cautious approach.

Conclusion

These analyses provide a clear picture of which stocks belong in your portfolio, emphasizing the importance of consistent short-term strength and key technical indicators.