This year has thrown a lot of unexpected events into the mix. We saw a pandemic — a once-in-a-century event that essentially halted society in its tracks and put marble racing in ESPN time slots usually reserved for LeBron James. But despite this, a handful of sports-betting stocks have attractive outlooks.
Here are five companies in the sports-betting industry that investors should take a look at:
- Churchill Downs (NASDAQ:CHDN)
- Esports Entertainment Group (NASDAQ:GMBL)
- Newgioco Group (NASDAQ:NWGI)
- Caesars Entertainment (NASDAQ:CZR)
- Penn National Gaming (NASDAQ:PENN)
Sports-Betting Stocks: Churchill Downs (CHDN)
Most investors will recognize this name. CHDN operates the vaunted Churchill Downs racetrack in Louisville, Kentucky. It’s one of the most legendary tracks in the world and home of the Kentucky Derby.
Although it’s worth noting that the stock has a D grade for its fundamentals, its overall rating in my Portfolio Grader tool is a B.
It’s one of the more valuable names on the list of sports-betting stocks, with a valuation north of $5 billion. It doesn’t just operate racetracks — CHDN also operates an online betting platform and owns eight casinos with over 11,000 slot machines and 200 table games.
Esports Entertainment Group (GMBL)
Esports Entertainment Group is toward the opposite end of the spectrum as far as size is concerned. Unlike Churchill Down’s $5 billion valuation, GMBL is worth around $60 million in total.
This Malta-based company, which, as its name implies, facilitates betting on esports, is also given an overall rating of B.
Esports is a growing area with secular long-term tailwinds, and GMBL was smart to rebrand with the esports moniker in 2017. Prior to the move, the company spent the first nine years of existence under the name VGambling.
Shares of GMBL are up about 55% year-to-date.
Newgioco Group (NWGI)
This Toronto, Canada-based sports-betting stock was founded in 1998. It may not yet have the household reputation of Churchill Downs, but it’s still worthy of investor attention here.
Spanning both online and offline gaming services it offers throughout Europe, Newgioco doesn’t just indulge in sports betting. It offers traditional casino games like poker and slots.
The company is the least valuable of the sports-betting stocks on this list with a valuation around $30 million, so keep that higher risk profile in mind before hopping in. With an overall rating of a B, there’s a lot to like.
Although NWGI stock has a D rating for its fundamentals in my Portfolio Grader tool, it has an A rating on the quantitative side.
Caesars Entertainment (CZR)
Caesars Entertainment, like Churchill Downs, is a blue-chip name among the sports-betting stocks. And it’s a multibillion-dollar casino dynamo at that.
The Las Vegas-based casino and resort company, founded in 1937, has 49 casinos, 40,000 hotel rooms, 38,000 slot machines and over 2,700 table games.
Formerly known as Harrah’s, the company is worth about $8 billion. Although analysts certainly expect CZR stock to suffer thanks to this year’s economic environment, the market expects revenue to advance 30% in 2021 as things get back to normal and consumers increasingly return to the status quo. It’s also important to remember that a merger with ElDorado Resorts (NASDAQ:ERI) is coming.
Like the other companies on this list, CZR has an overall grade of B in my Portfolio Grader tool.
Penn National Gaming (PENN)
Up 60% over the last year, shares of Penn National aren’t equally appropriate for all types of investors. Shares have an overall grade of B in my Portfolio Grade, but that’s not all investors should note. They’ve earned an F in fundamentals but an A on the quant side.
PENN is worth about $4.3 billion, but the F grade in fundamentals is based in part on Penn National’s high debt load and the expected loss of $8.14 per share in 2020.
That said, while projections aren’t the same as historical results, the fact that the market expects Penn National’s revenue to surge 56% in 2021 makes the gaming and racing company one of the most compelling sports-betting stocks to buy.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.