Stocks Under Rihanna's Umbrella

02/20/08 - 12:00 PM EST

Stockpickr Staff

Rihanna, the rising pop, R&B and reggae singer, is celebrating her birthday today. The Barbados-born singer, whose full name is Robyn Rihanna Fenty, turns 20 years old. Last week she won a Grammy award for her hit Umbrella, a collaboration with rap artist Jay-Z.

Because Rihanna is connected to several publicly traded companies through her celebrity endorsements, Stockpickr has compiled a Rihanna Stock Index, a list the companies associated with the singer.

First, a bit of trivia about the chanteuse.

  • She has had her legs insured for $1 million.
  • She is one of the four richest teens in Hollywood, according to The Times of India.
  • She was on AskMen.com's 2007 list of the Top 99 Most Desirable Women.
  • She was chosen as a "Victoria's Secret's Sexiest Female Musician."
  • She was ranked No. 8 on the 2007 Maxim Hot 100 list.

One of Rihanna's big celebrity endorsement deals was with Nike (NKE Quote - Cramer on NKE - Stock Picks), which used her hit single SOS in its advertising. Nike has a price-to-earnings (P/E) ratio of 18, a P/E-to-growth (PEG) ratio of 1.3 and pays a yield of 1.5%.

Rihanna also provided celebrity endorsement for J.C. Penney (JCP Quote - Cramer on JCP - Stock Picks), more specifically for Miss Bisou, a new juniors line at the department store chain. J.C. Penney is set to report fourth-quarter earnigns on Thursday. The stock has a forward P/E of 12, a PEG of 0.7 and pays a yield of 1.7%.

Another company that she is working with, along with rapper Timbaland and rock band Good Charlotte, is Hennes & Mauritz (HMRZF Quote - Cramer on HMRZF - Stock Picks), a Swedish clothing company that trades on the Pink Sheets in the U.S. The stock had a net profit margin of 20.4% for the latest quarter and a return on average equity of 62.3%.

Rihanna also landed a deal with Clinique to promote the cosmetics line's fragrance, Clinique Happy. Clinique is owned by Estee Lauder (EL Quote - Cramer on EL - Stock Picks), which early this month posted a rise in fiscal second-quarter profit. The stock offers a forward P/E of 16, a PEG of 1.5 and a yield of 1.3%.

Rihanna was also the face for CoverGirl, a cosmetics line owned by Procter & Gamble (PG Quote - Cramer on PG - Stock Picks). P&G has a forward P/E of 16, a PEG of 1.4 and offers a 2.1% yield.

Her record label is Def Jam Records, which is owned by Universal Music Group, a wholly owned subsidiary of Vivendi (VIVEF Quote - Cramer on VIVEF - Stock Picks). Vivendi, a French entertainment conglomerate, trades on the Pink Sheets in the U.S. The stock has a trailing P/E of 11.5.

To track these Rihanna-inspired stock ideas, check out the Rihanna Stock Index at Stockpickr.com.

Stockpickr is a wholly owned subsidiary of TheStreet.com.
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