5 US betting stocks to explore ahead of NFL season

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 5 US betting stocks to explore ahead of NFL season
Image source: © Carmenmurillo | Megapixl.com

Highlights:

  • DraftKings Inc. (NASDAQ: DKNG) earned a revenue of US$ 466 million in Q2, 2022.
  • MGM Resorts International has a market cap of US$ 7.9 billion.
  • Caesars Entertainment, posted GAAP net revenues of US$ 2.8 billion. 

Since the US Supreme Court has lifted the federal ban on sports betting, more than 30 states and the District of Columbia have permitted sports betting in some form or other. Now, ten more states are likely to legalize this practice in the coming days.

The online betting industry will likely spring into action as the NFL season begins early next month. The NFL has lured sports betting even before the US Supreme Court ruling in 2018. At the start of this year, online betting went live in New York, boosting the gambling industry.

In this article, we explore five sports betting stocks along with Kalkine Media® and see the performances over the months:

DraftKings Inc. (NASDAQ: DKNG)

DraftKings has operations in 17 states, captures 25 per cent of the market space, and runs five online casinos.

The DKNG stock plunged 35.18 per cent year-to-date (YTD). However, over the past month, it jumped over 34 per cent.  

DraftKings has a market valuation of US$ 7.9 billion and in Q2 2022, DraftKings posted revenue of US$ 466 million compared to US$ 298 million in Q2 2021.

DraftKings also raised its fiscal year 2022 revenue guidance to US$ 2.08 billion to US$ 2.18 billion from what it announced in the first quarter earnings results of US$ 2.055 billion to US$ 2.175 billion.

MGM Resorts International (NYSE: MGM)

MGM Resorts is a global US hospitality and entertainment firm that runs destination resorts in several places, including Las Vegas, Detroit, Massachusetts, Maryland, Mississippi, and New Jersey.

MGM is also slated to open two new hotels in 2022 and 2023 as part of its growth plans. The company’s price-to-earnings ratio is 4.86, and its market cap is US$ 13.7 billion.

In the second quarter of 2022, MGM Resort bought back US$ 1.1 billion shares of its common stock. MGM stock saw a surge of 12.63 per cent over the past month.

MGM registered net revenues of US$ 3.3 billion in Q2 2022, compared to US$ 2.3 billion in the year-ago quarter, which was an increase of 44 per cent.

The net income attributable to MGM Resorts in Q2 2022 was US$ 1.8 billion, whereas it was US$ 105 million in the corresponding quarter in 2021.

Caesars Entertainment, Inc. (NASDAQ: CZR)

Caesars runs more than 50 casinos in the US and is famous for its Las Vegas-based Caesars Palace casino. It was earlier known as Eldorado Resorts.

Caesars is expected to acquire brick-and-mortar casinos to grow its portfolio in the coming days while building two new casinos in Las Vegas.

The company has a market valuation of US$ 9.9 billion. The CZR stock was trading at US$ 46.50, up 1.11 per cent at 8:52 am ET on August 25, 2022.

The share price of Caesars Entertainment increased 10.24 per cent over the past month. In its Q2 2022 financial results, Caesars Entertainment posted GAAP net revenues of US$ 2.8 billion, compared to US$ 2.5 billion for the comparable quarter a year ago.

The company said they successfully closed the William Hill non-US sale on July 1, 2022, applying US$ 730 million in net proceeds to reduce debt on July 22.

Exploring sports betting stocks: DKNG, MGM, CZR, FUBO, PENNSource: ©Kalkine Media®; © Canva via Canva.com

fuboTV Inc. (NYSE: FUBO)

With a primary focus on sports, fuboTV is an online multi-channel video programming distributor. It had more than one million subscribers at the end of 2021 and has a target of 1.5 million by the end of this year.

It has a market cap of US$ 753.28 million. FUBO stock plunged over 74 per cent year-to-date. But from the past month, it saw an upsurge of over 63 per cent.

On August 15, fuboTV announced the appointment of Lynette Kaylor as its Senior Vice President of advertising sales.

fuboTV delivered double-digit Q2 2022 total revenue of US$ 216.1 million, and its paid subscribers in the second quarter of 2022 grew to 946,735.

PENN Entertainment, Inc. (NASDAQ: PENN)

Penn Entertainment, Inc. operates casinos and racetracks with a market valuation of US$ 5.7 billion.

Its price-to-earnings ratio is 27.58. The PENN stock was trading at US$ 34.11, up 1.37 per cent, with a share volume of 92,705 at 9:43 am ET on August 25, 2022.

Penn Entertainment posted Q2 2022 revenues of US$ 1.6 billion, up 5.2 per cent year-over-year.

It registered a net income of US$ 26.1 million in the second quarter of 2022. The company repurchased US$ 167 million of its common stock at an average price of US$ 30.16 in Q2 2022.

Bottom line:

Investors looking to include sports betting stocks in their portfolio should do their due diligence, especially when the market is unpredictable. During a downturn, looking for long-term strategies to gain returns is advisable.

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