It’s time to bet on these three sports bets, analysts say
The stocks of guilt, mainly alcohol, tobacco, and gambling, may have a bad reputation, but they are big business, and they can bring serious investment to investors. And in a news release last week, New York State officially legalized online sports betting. The outline of the games was included in the state’s regular budget proposal, as the legislature saw legalized sports betting as a way to increase tax revenue. Governor Cuomo signed the bill. In order to place online sports betting on the golf course, there is a provision in New York’s brief description that platform providers must offer to obtain two available legal applications. Selected suppliers will pay a one-time fee of $ 25 million to each state, և their operations will be subject to a 13% minimum tax rate. The terms of the bill allow betting on both professional and college sports, as long as no New York college is involved in the actual sporting event. The New York bill is a major step in the general trend toward more legalized betting in the United States. More than two dozen states now have legal sports betting. In many cases, though, bets must be placed in person. Moving the service online, as New York does, is the next step, implemented by 14 states. The trend is to make online betting providers a natural target for investors interested in legal games and the companies that offer them. Using the TipRanks platform, we looked for three stocks for which some street analysts predict strong growth over the next 12 months. Here are the details: Penn National Gaming (PENN) The first gaming pool we look at, Penn National, started in the equestrian business in the 1960s and has since expanded to become the main gaming operator in 19 states, where it controls 41 games. ավային Racing properties. Penn also has slot machine video game terminals and offers live sports betting in Colorado, Illinois, Indiana, Iowa, Michigan, Mississippi, Pennsylvania, and West Virginia. Penn owns a 36% stake in Barstool Sports, which uses the company’s media to use its own interactive betting products. Penn’s network, which includes 48,000 slot machines, 1,300 board games and 8,800 hotel rooms, is infiltrating a casino audience of 20 million customers, as well as the Barstol online audience of 66 million customers. So Penn is trying to achieve that in a big way. It helped the company weather the storm in 2020, although the COVID closure had a big impact on earnings. For 4Q20, the company reported more than $ 1.03 billion at the top, down 23% year-on-year at 7 cents EPS. While earnings were declining, EPS did well against last year’s ց 80 loss. Shares have risen ~ 400% in the last 12 months. Penn is working to expand its online presence, and in February of this year it partnered with Capital Region Gaming on a 20-year contract that now allows Penn to enter the New York online casino և sports betting market. The move was speculative by Penny, but is now justified by the new legislation. In addition to launching in New York, Penn launched its Barstool Sportsbook mobile app in Illinois in March. The app will be available for both Android and iOS users via smart devices և desktops. In March, Penn received the first regulatory approval, a temporary permit from the Virginia Lottery, to make the Barstol program available in that state. 5-star analyst Bernie McTernan, covering the Rosenblatt Penny, writes: “Like our industry, PENN strongly supports the potential of ancillary legislation this year, noting that a target of 40% market entry is reasonable for EU-21, although there is still a high level of uncertainty. Given their regional footprint և OSB relative market share, PENN is confident in its ability to gain access to all new markets. For states with existing legislation, their regional footprint և Barstol’s popularity in the state will be a determining factor over time. We expect PENN to be targeted by launching operations in IL, IN, NJ և CO under applicable law in all states by the NFL season. “McTernan’s comments confirm his PENN rating, as well as his $ 140 price tag, which is expected to increase by 62% for next year. (Click here to view McTernan history) Overall, PENN has attracted attention By Wall Street analysts, who recently set a 9-point buying rating on the stock exchange, which is partially offset by a 1 պահ 1 hold, which the analyst agrees on is a Moderate Buy. The average price target is $ 125.27, which assumes up% 40% above current trade price $ 92.85 (see PENN Stock Analysis at TipRanks) DraftKings, Inc. (DKNG), a major player in online sports betting and fantasy sports leagues. DraftKings shares have risen 208% in the last 12 months, with DraftKings becoming the first legal mobile sports betting ou tfit in New Ersey. to whom, from there in 2018, և since then has expanded its geographical area և game offers. The company allows app users to bet on sports games, bet on fantasy leagues, and play more traditional online casino games. In its latest quarterly report for 4Q20, DraftKings demonstrated a database that provides a solid foundation for success. The company accounted for 1.5 million unique players a month in Q4, while more than 1 million in Q3. The average monthly income of unique players was $ 65 and the quarterly total income was $ 322 million. That was 38% more than expected. The increase in the number of users: revenues pushed the company to increase its main directions in 2021, from $ 750 million to $ 850 million, from $ 900 million to $ 1 billion, or an average increase of 18%. In mid-April, DraftKings became the National Football League’s official sports betting partner, the NFL’s daily fantasy partner. The partnership erodes DraftKings’ position as the leader in online fantastic sports leagues, giving DraftKings the right to integrate its sports betting content into the official NFL media. According to Oppenheimer analyst Ed Kelly, “DKNG can enhance the experience of its fans through NFL highlights, staff և next Gen Stats.” Kelly reveals a clear case for DKNG, noting: “Company boosts engagement (87% / 108% customer / revenue retention in 2nd year) և We see SBTech migration (DraftKings will switch to using SBTech for its platform in September) providing improved product features such as the same games screenings that close the competitive gap with other major operators. In addition, the economics outlook for the updated DKNG state-level unit assumes an efficiency of b 800bps gross margin in terms of internal technology platform migration և other efficiency scales. To that end, Kelly values its shares in DraftKings Outperform (ie Buy), and its $ 80 price target for a one-year increase of 34%. (Click here to view Kelly’s story) Overall, DraftKings receives a Moderate Purchase Rate based on an analyst’s consensus, based on 20 reviews that include 14 purchases և 6 saves. The shares are trading at $ 59.69, their average price target of $ 74.16 is expected to increase by 24% over the next 12 months. (See DKNG stock analysis at TipRanks) fuboTV (FUBO) fuboTV launched in 2015 as a football streaming service. American leagues: NFL, MLB, NBA, NHL և MLS. The present also broadcasts international football, news և along with network programming. Online streaming is a fast growing sector, ub fuboTV ended 2020 with strong results. The company had 548,000 paid subscribers as of December 31, which aired a total of 545 million hours of programming during the year. Revenue this year was $ 269 million, and in the fourth quarter the company added more than 92,000 subscribers, exceeding $ 105 million in quarterly revenue. In early March, fuboTV announced that it had entered into deals in three states to launch its fubo Sportsbook online sports betting service. The company entered Iowa through Casino Queen and now has access to the New Jersey իան Indiana market through an agreement with Caesars Entertainment. fuboTV expects to launch the Sportsbook 4Q21 service before regulatory approval. Barrington analyst James Ames Goss has taken a deep look at FUBO, he sees many reasons for optimism in the company. “Sports betting is the focus of management to develop a sports book to promote engagement and retention while creating additional revenue opportunities,” Goss wrote. The analyst added. “Developing profitability and cash flow targets will take time, and progress towards achieving domestic goals will in part reflect the efforts to manage the growth balance between investment and investment.” “Sports gambling transfer can be the biggest wild card in this regard, while also offering the biggest extra return.” Goss rates FUBO Outperform (ie Buy) while targeting $ 40 per share. This figure suggests a 2 84% decline potential for 2021. (Click here to watch Gos’s story) How does Gos’s shocking bet against the Street weigh? Overall, Wall Street likes FUBO, a fact that is clear from the reviews of a record 7 analysts. 6 of them are Purchases for only 1 booking. The stock is trading at $ 21.78, and the average price target of $ 45.43 is even more shocking than Goss. it offers a 120% growth opportunity this year. (See FUBO Stock Analysis on TipRanks) To find good stock trading ideas with attractive ratings, visit TipRanks ‘”Buy the Best Shares”, a newly launched tool that integrates all of TipRanks’ capital gains. Refusal. The opinions expressed in this article are solely those of well-known analysts. The content is intended for informational purposes only. Important It is very important to do your own analysis before making any investment.