7 best Canadian video game & esports stocks to buy

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 7 best Canadian video game & esports stocks to buy
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Highlights

  • Video games and especially esports, saw mainstreaming during the pandemic and lockdowns
  • As people look for media that is more interactive, gaming has gained prominence
  • Through 2030, the expected compound annual growth rate is 12.9 per cent

As people look for media that is more interactive, gaming has gained prominence. Gaming has made great strides over the past couple of decades and it doesn’t seem like the momentum will cease anytime soon.

Today, Canadian investors looking for a stake in this industry have a few options. They may choose between hardware producers that cater to the space, e-sports and online betting and video game producers.

So, let’s look at some Canadian gaming stocks.

Enthusiastic Gaming Holdings Inc (TSX:EGLX)

The company is creating a platform that enables gamers and e-sports fans to create communities. It is said to have a reach of over 300 million gamers a month.

EGLX, on Wednesday, June 1, closed at C$2.90. Though it is down 22 per cent year-to-date (YTD), it has gained 16 per cent in the last 30 days, including nine per cent in the last week.

Bragg Gaming Group Inc (TSX:BRAG)

Bragg provides a business-to-business technology platform for next-generation gaming. BRAG closed Wednesday at C$6.77.

The stock has gained 5.5 per cent YTD and is up 8.5 per cent in the last week. On May 12, it touched a one-year low of C$5.32 and has recovered 27 per cent since.

Spin Master Corp (TSX:TOY)

Spin Master is a C$1.4 billion market cap company that has a portfolio of toy products. It also has digital games.

TOY at market close Wednesday stood at C$44.38. Over the last 12 months, it has returned 8.5 per cent.

Though in red by seven per cent YTD, it has rebounded and is up three per cent quarter-to-date.

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React Gaming Group (TSXV:RGG)

React has a variety of brands that cater to esports social gaming and online betting. That includes Team BloodHounds, a Canadian Fortnite team that is one of the best.

RGG ended Monday at C$0.155 and it has surged over 19 per cent in the past week. In 2022, however, it is down 50 per cent.

Engine Gaming and Media Inc (TSXV:GAME)

The company combines esports gaming with marketing, data analysis and advertising.

Its stock closed Wednesday at C$1.25 after spiking six per cent in the day’s trading. Week-to-date, it is up nine per cent.

However, on a YTD basis, it has lost 68 per cent.

Pollard Banknote Limited (TSX:PBL)

Its products include lotteries, eGaming systems and charitable gaming. In one week, it had gained eight per cent when it closed Wednesday at C$20.70.

However, it is down 48 per cent YTD and is currently only nine per cent better than its 52-week low of C$18.94 that came on May 12.

PBL has a price-to-earnings (P/E) ratio of 29.5, which suggests the number of dollars to be invested to gain a dollar in profit. Its dividend yield is 0.77 per cent.

Playmaker Capital Inc (TSXV:PMKR)

Other than digital sports media, Playmaker is also involved with online gaming via its brand Two-Up. Its stock ended Wednesday at C$0.45.

It has gained 2.3 per cent in a week. In 2022, the stock has lost 41 per cent and it is 27 per cent above its one-year low of C$0.35 seen on July 19, 2021.

Canadian video game & esports stocks

Bottom line

Most equities have been having a bad year, so far, and it seems, for the most part, gaming stocks are no different. However, video games and especially esports saw mainstreaming during the pandemic and lockdowns.

Through 2030, the expected compound annual growth rate for video games is 12.9 per cent. All these stocks are currently trading under 50 per cent above their 52-week lows.

Also read: Can summer cheer boost these 5 TSX midcap stocks?

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

 

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