How much does $3.8 million buy? For a handful of the nation’s biggest companies, a 30-second spot during last night’s Super Bowl game.
But as expensive as this ad buy was, some companies are already reaping the benefits of advertising during such a high-profile event. Over 48% of American households tuned in to the 2013 Super Bowl—analysts expect to smash through last year’s record 111 million viewers. This year, there was no doubt that Budweiser’s touching Clydesdale commercial and Taco Bell’s “Viva Young” ad were fan favorites, and there were largely positive reactions to this year’s offerings from Toyota Motors and Best Buy.
For the others, were the advertisements good investments? I must admit that I’m curious about some of these big players, so today I’m going to run some of the biggest companies showcased at the 2013 Super Bowl through Portfolio Grader to better assess their profit potential.
(For those of you who haven’t yet used my Portfolio Grader tool to check out your holdings, the Quantitative Grade indicates the current level of buying pressure for the stock while the Fundamental Grade is derived from a weighted blend of eight fundamental variables, including sales and earnings growth.)
Here’s what I found about these companies:
|Ticker||Company Name||Super Bowl Commercial||Quantitative Grade||Fundamental Grade||My Take|
|BUD||Anheuser-Busch InBev||Brotherhood (Budweiser)||A||C||Buy|
|BBY||Best Buy Co.||Asking Amy||F||D||Sell|
|KO||Coca-Cola Inc.||Coke Chase 2013||C||C||Hold|
|ETFC||E TRADE Financial Corp.||Save It||D||D||Sell|
|MDLZ||Mondelez International||Whisper Fight (Oreos)||B||C||Buy|
|SKX||Skechers USA Inc.||Man Vs. Cheetah||B||C||Buy|
|SODA||Sodastream International Ltd.||SodaStream Effect||C||B||Buy|
|TM||Toyota Motor Corp.||Wish Granted||B||B||Buy|
|YUM||Yum! Brands Inc.||Viva Young (Taco Bell)||C||B||Hold|
As you can see, a number of these companies probably need to spend less time shelling out for expensive ad spots and more time cleaning up balance sheet issues. So, while I’m happy to give the ad experts behind these commercials credit for their creativity, you’d be wise to watch them for entertainment only. Any stock ideas are best left to our fundamental and quantitative screens.