Like a victorious fighter emerging from a fierce brawl, World Wrestling Entertainment has survived this year's bear market. While not unscathed, WWE stock has fared better than most as it lunges into a buy zone with its relative strength line soaring.
In addition to making the IBD 50 list of top growth stocks, World Wrestling Entertainment has also battled its way onto the IBD Breakout Stocks Index.
As a global entertainment behemoth, WWE provides television programming that can be seen in over 1 billion homes in 30 languages across 180 countries. The Connecticut-based company also offers live wrestling events, digital media and publishing platforms.
Distribution partners for World Wrestling Entertainment include NBCUniversal, FOX, BT Sport, Sony India and Rogers Communications.
WWE also has a major licensing business, generating $1 billion at retail annually. It has over 100 licenses in more than 100 countries. Branded merchandise is available at all major retailers such as Walmart, Target, Amazon.com, GameStop, Walgreens Boots Alliance and more.
See Who Joins WWE On The IBD Breakout Stocks Index
WWE Recruits On Campus, Streams Down Under
Within the last month, World Wrestling Entertainment has announced a campaign to find the next generation of WWE stars on college campuses, while also locking down a multiyear partnership in Australia.
On Sept. 27, WWE and Foxtel Group revealed an agreement that will make Foxtel the exclusive destination for WWE in Australia. The new deal will deliver WWE's live and on-demand content to Foxtel Group's 4.5 million subscribers. The WWE content will be on Foxtel as well as the rapidly growing streaming services Kayo Sports and BINGE. Foxtel is owned by News Corp. which is also IBD's parent company.
Meanwhile, WWE just unveiled its WWE Campus Rush. A multi-campus college athlete recruitment tour, the project will visit top NCAA Division I universities in search of the next generation of WWE Superstars. The WWE Campus Rush follows the company's Next In Line program, begun in 2021, which works with select athletes to create a pathway from collegiate sports to WWE.
WWE Stock Wrestles With Buy Zone
With its relative strength line spiking to a new 52-week high, WWE stock is now wrestling with a new buy point. But in this bruised and battered market, caution is called for with any stock.
Unlike all-too-many stocks in this bear market, WWE stock's 50-day moving average has remained solidly above its longer-term 200-day line since mid-March. And in a further sign of technical strength, note how the 21-day line has retaken the 50-day benchmark.
Showing institutional demand, the company made the latest list of new buys by the best mutual funds. Recent days of heavy upside volume reinforce clear demand for WWE stock.
WWE initially stumbled after briefly tapping a 75.33 buy point in a cup pattern on Oct. 5. Showing the resilience of a prize fighter, the stock is now testing the buy zone.
As mentioned, the market indexes have been brutal on investors, making the current environment a risky one for buying stocks. With your sell rules guiding you like a ringside coach, see if WWE can sustain its move in strong volume.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator funds.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
