With the 2024 NFL season underway, it’s time to look into gambling stocks.
After all, according to the American Gaming Association, Americans are expected to wager about $35 billion on NFL games this year. That’s up from the $26.7 billion wagered a year ago.
As noted by CBS Sports, “The NFL remains king, and more money is wagered on the NFL than any other league. The NFL also attracts six-figure wages (and sometimes seven-figure wagers) on a regular basis throughout the season.”
That being said, investors may want to place bets on stocks such as:
Key Points About This Article:
- With Americans projected to wager $35 billion on NFL games this year, sports betting stocks could see substantial returns.
- Here are three top sports betting stocks investors can buy to become the “house” in the world of sports betting.
- If you’re looking for some stocks with huge potential, make sure to grab a free copy of our “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.
DraftKings (DKNG)
Let’s start with DraftKings (NASDAQ:DKNG), which has 70% revenue share with FanDuel.
For one, after a recent pullback from about $42, the stock found strong support at $37.95.
Two, analysts at Needham recently reiterated a buy rating on DKNG and said it’s in a strong position to benefit in the online sports betting market. Analysts at Macquarie also named KDNG as a top online stock to own during the NFL season “because it is most exposed to near-term upside from favorable NFL game outcomes, higher structural hold and general online sports betting/iGaming growth momentum”.
Even better, the company just announced a $1 billion buyback program and boosted its fiscal year 2024 revenue guidance to a range of $5.05 billion to $5.25 billion from a prior range of $4.8 billion to $5 billion.
Flutter Entertainment (FLUT)
Weakness is opportunity for Flutter Entertainment (NYSE:FLUT) .
Just days ago, the stock flopped on concerns the United Kingdom said it was weighing a proposal to double some of the taxes on online casinos. However, according to Benchmark analysts, the pullback is an “ideal opportunity.”
Better, Wells Fargo upgraded FLUT to an overweight rating with a $295 price target. Bank of America also reinstated its buy rating with a $300 price target on FLUT, adding it to their “Europe 1” list of trading ideas.
Sports Betting & iGaming ETF (BETZ)
Or, if you want to diversify at a lower cost, there’s the Sports Betting & iGaming ETF (BETZ). With an expense ratio of 0.75%, the ETF tracks the performance of the Morningstar Sports Betting & iGaming Select Index. Some of the top holdings in the ETF include Flutter Entertainment, DraftKings and Churchill Downs (NASDAQ:CHDN).
Even better, recent weakness is an opportunity to buy the BETZ ETF.
After testing a high of $19.36, the ETF pulled back to $18.57, where it appears to have caught strong support. Plus, it’s also over-extended on RSI, MACD and Williams’ %R, which tells us a pivot higher is likely near term. From $18.57, we’d like to see the BETZ ET retest $22.50 near term. With millions of Americans making big bets on sports events, that should be easy to accomplish.
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