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Unbelievable 2023 NCAA March Madness Men's Tournament Has Sports Betting Stocks on Fire
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If there is one sporting event, other than the Super Bowl, every year that gathers attention from almost everybody it is the NCAA Men’s Basketball tournament. With incredible upsets at the Sweet 16 and Elite 8 levels this year, the betting handle has been huge. In fact this year, it possibly will see more betting action collectively than the Super Bowl, according to industry experts.
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The explosion of sports gambling has been triggered by so many new states legalizing gambling as a way to generate revenue, and with this year’s incredible collection of Final Four teams, with no top three seeds remaining for the first time since 1979, the gambling numbers could continue to explode higher. Gaming stocks were red-hot just as the COVID-19 pandemic got rolling in 2020, and almost all were crushed as the costs of entering new markets and paying to get gamblers to sign up weighed heavily on profits. It appears though that many of the top stocks have turned the corner and could be headed for some big profits in 2023.
We screened our 24/7 Wall St. gambling and sports betting universe looking for stocks that may be the big winners. While there are many players in the sector, five top companies stand out as solid ideas for growth stock investors. They are rated Buy on Wall Street, but it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Caesars Entertainment
Shares of this well-known old-school gaming company are offering solid upside. Caesar’s Entertainment Inc. (NASDAQ: CZR) provides casino entertainment and hospitality services, primarily under the Harrah’s, Caesars, Horseshoe and Eldorado brand names, in the United States. It owns, leases or manages domestic properties in 16 states with slot machines, video lottery terminals and e-tables, and hotel rooms, as well as table games, including poker.
Caesars Entertainment also operates and conducts sports wagering across 28 jurisdictions in North America, including mobile for sports betting and regulated online real money gaming in six jurisdictions; retail and online gaming and sports betting; and other games, such as keno. In addition, the company operates dining venues, bars, nightclubs, lounges, hotels and entertainment venues, and it provides staffing and management services.
Barclays has a $70 target price on Caesars Entertainment stock, and the consensus target on Wall Street is $69.77. The stock closed almost 4% higher on Thursday at $46.87.
24/7 Wall St.DraftKings
After starting out as a fantasy sports provider, the company has become a favorite among sport gamblers. DraftKings Inc. (NASDAQ: DKNG) operates as a digital sports entertainment and gaming company. It offers multichannel sports betting and gaming technologies, powering sports and gaming entertainment for operators in 17 countries.
DraftKings operates iGaming through its DraftKings brand in five states, as well as operates Golden Nugget Online Gaming, an iGaming product and gaming brand, in three states. Its Sportsbook is live with mobile and/or retail betting operations in the United States pursuant to regulations in 18 states.
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The company’s daily fantasy sports product is available in six countries with 15 distinct sports categories. In addition, it offers DraftKings Marketplace, a digital collectibles ecosystem designed for mainstream accessibility that offers curated NFT drops and supports secondary-market transactions, as well as owns Vegas Sports Information Network, a multiplatform broadcast and content company.
Canaccord Genuity has set its target price at $30. DraftKings stock has a $24.14 consensus target, and Thursday’s closing print was $18.91.
MGM Resorts
This is another old-school gambling play that has jumped into the online and mobile sports gambling arena. MGM Resorts International (NYSE: MGM) owns and operates casino, hotel, and entertainment resorts in the United States and Macau that offer gaming, convention, dining, entertainment, retail and other resort amenities.
The company’s casino operations include slots and table games, as well as online sports betting and iGaming through BetMGM. Its customers include premium gaming customers; leisure and wholesale travel customers; business travelers; and group customers, including conventions, trade associations and small meetings.
The Barclays price objective is $59, while the consensus target is $54.48. MGM Resorts International stock ended Thursday’s session trading at $43.33.
Penn Entertainment
This is an analyst favorite for online gaming and gambling. Penn Entertainment Inc. (NASDAQ: PENN) provides integrated entertainment, sports content and casino gaming experiences in North America. It operates online sports betting in various jurisdictions, as well as iCasino under a portfolio of brands, including Hollywood Casino, L’Auberge, Barstool Sportsbook and theScore Bet.
The company’s portfolio also includes MyChoice, a customer loyalty program that offers a set of rewards and experiences for business channels. In addition, it owns various trademarks and service marks, including Ameristar, Argosy, Boomtown, Greektown, Hollywood Casino, Hollywood Gaming, L’Auberge, and M Resort.
In 2020, the company, which was then called Penn National Gaming, bought a 36% stake in Barstool Sports valued at $450 million and options to increase its stake to 50% in the future. Barstool is a sports media empire with millions of monthly active users and reportedly over 100 million social media followers. In February of this year Penn said it paid $388 million for the 64% stake in Barstool Sports it did not already own.
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Penn Entertainment stock has a $46 target price at Credit Suisse. That compares with a $41.89 consensus target and the most recent close at $28.91 a share.
Wynn Resorts
This opulent casino company is the high-end of the industry and offers very solid long-term growth potential. Wynn Resorts Ltd. (NASDAQ: WYNN) designs, develops and operates integrated resorts. The company operates through the following four segments.
24/7 Wall St.The Wynn Palace segment operates private gaming salons and sky casinos; a luxury hotel tower with suites and villas, including a health club, spa, salon and pool; food and beverage outlets; retail space; meeting and convention space; and performance lake and floral art displays.
The Wynn Macau segment operates casino space with private gaming salons, sky casinos and a poker room; a luxury hotel tower that includes health clubs, spas, a salon and a pool; food and beverage outlets; retail space; meeting and convention space; and Chinese zodiac-inspired ceiling attractions.
The Las Vegas Operations segment operates casino space with private gaming salons, a sky casino, a poker room and a race and sports book; a luxury hotel tower with suites and villas, including swimming pools, private cabanas, full-service spas and salons, and a wedding chapel; food and beverage outlets; meeting and convention space; retail space; and theaters, nightclubs and a beach club.
The Encore Boston Harbor segment operates casino space with gaming areas and a poker room; a luxury hotel tower with a spa and salon; food and beverage outlets and a nightclub; retail space; meeting and convention space; and a waterfront park, floral displays and water shuttle service.
The $138 Credit Suisse price objective is a Wall Street high. The consensus target is $119.31, and Wynn Resorts stock closed at $109.00 on Thursday.
While most March Madness NCAA brackets have been busted, sports gamblers can reset every time somebody wins or loses, and you can be sure there will be a ton of action coming in this weekend for the Final Four and next Monday when the National Championship game is played.
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