8 Stocks to Buy for 'Star Wars' Fans
The newest film should boost these stocks.
Our friends at The Walt Disney Co. can't wait until December. More than three months before the long-awaited "Star Wars: Episode VII -- The Force Awakens" opens in theaters, Disney is rolling out its universe of new "Star Wars" toys and memorabilia this week in an 18-hour global event spanning 15 cities and 12 countries. It's the first "Star Wars" film in a decade, and the first since Disney bought rights to the "Star Wars" franchise and Lucasfilms for $4 billion in 2012.
But investors don't have to wait. Here are eight ways to buy into "Star Wars" hysteria now.
Disney (DIS)
With its $4 billion investment to buy Lucasfilms, Disney is unquestionably the company with the biggest stake in the new "Star Wars" films. You can expect "Star Wars: Episode VII -- The Force Awakens" to be the biggest movie of the Christmas season -- the other six films collected a combined $4.4 billion in box office revenue -- and Disney is primed to make this the biggest "Star Wars" yet. Disney also announced plans to open "Star Wars" theme parks at its attractions in Florida and California.
Mattel Inc. (MAT)
The maker of Hot Wheels toy cars, Barbie, American Girl and Fisher-Price is expecting a boost from its license to market "Star Wars"-related cars and vehicles. "For the first time, its beloved Hot Wheels brand will join forces with 'Star Wars' to produce a new set of vehicles based on the upcoming 'Star Wars' movie. While all Wheels products, which include Hot Wheels and Matchbox, are just over 11 percent of total Mattel sales, the success of this new initiative could be an early indicator of the potential for the company's future innovations," says Bruce Kaser, a portfolio manager for Ironwood Investment Management in Boston and co-manager of the Event-Driven SMID Cap Value portfolio on Covestor.
Electronic Arts Inc. (EA)
Electronic Arts signed a 10-year exclusive licensing deal with Disney in 2013 to make "Star Wars" games -- and with a new trilogy of movies launching in December, EA developers are looking to keep gamers busy. Much of the company's short-term hopes are riding on the sixth installment of the "Battlefront" series that is scheduled to be released this year. EA is hoping to sell as many as 10 million copies of the game, which will be available in November on Microsoft's Xbox One, Sony PlayStation 4 and personal computers.
IMAX Corporation (IMAX)
In April, the large-screen movie company announced it renewed its multi-picture distribution agreement with Disney through 2017, which will allow it to show "Star Wars: Episode VII -- The Force Awakens" on IMAX's 72-foot wide screens. IMAX operates more than 800 theaters in 57 countries -- more than enough for "Star Wars" fans to want to see the Millennium Falcon in its full, big-screen glory.
Hasbro Inc. (HAS)
Hasbro has been a Wall Street star in 2015, and will likely go higher with its license to create and sell hundreds of "Star Wars"-branded games, action figures, electronic toys and puzzles. "Hasbro's brands, particularly its Transformers and Marvel superhero franchises, have been well-suited to TV and movie success. And with the big ramp-up of publicity with the upcoming 'Star Wars' movie, demand looks to be strong for probably several years to come," says Charles Sizemore, founder of Dallas-based Sizemore Capital Management, an investment advisory firm.
Wal-Mart Stores Inc. (WMT)
The nation's No. 1 retailer, with sales of $343.6 million last year and more than 5,100 stores, expects to be a key shopping place for customers to buy "Star Wars" toys and video games. One of the biggest challenges for Wal-Mart is that millennials are showing a greater preference for competitors Target (TGT) and Amazon (AMZN) than for Sam Walton's mega-sized discount empire. Wal-Mart lagged both Target's and Amazon's e-commerce sales in the last holiday season, and will need to close that gap this winter to maintain its retail dominance.
AMC Entertainment Holdings (AMC)
One of the biggest players in the entertainment industry, AMC operates 22 of the 50 highest-grossing theaters in the U.S. and holds the No. 1 or No. 2 market share in each of the nation's top 15 media markets. Rumors fueled by the fan site Star Wars Action News indicate AMC is planning to offer a "Star Wars" movie marathon before the Dec. 18 release of "Star Wars: Episode VII -- The Force Awakens." The company's similar promotion for "Avengers: Age of Ultron" involved airing a 27-hour marathon of every Marvel movie, so a "Star Wars" marathon isn't out of the question.
JAKKS Pacific Inc. (JAKK)
The smallest company on the list, JAKKS Pacific is licensed to create large-scale figurines from the "Star Wars" world. While it has a somewhat limited collection now, with figures ranging from 18 inches to 31 inches in height, the release of additional "Star Wars" movies gives JAKK stock an opportunity for long-term growth.
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