This is a name that most investors are familiar with. CHDN owns and operates Louisville’s famed Churchill Downs racetrack. It is the birthplace of the Kentucky Derby and one of the most popular racetracks in the world.
Despite the fact that the stock’s fundamentals receive a D, it receives a B overall rating in my Portfolio Grader method.
With a market capitalization of more than $5 billion, it is one of the more valuable names on the list of sports betting stocks. CHDN is more than just a racetrack operator; it also runs an online gaming site and owns eight casinos with more than 11,000 slot machines and 200 table games.
Esports Entertainment Group is a company that specialises in esports (GMBL)
In terms of size, Esports Entertainment Group is on the opposite end of the spectrum. GMBL is worth about $60 million in total, compared to Churchill Downs’ $5 billion valuation.
This Malta-based business, which facilitates esports betting as its name implies, is also given a B overall ranking.
Esports is a growing industry with long-term secular tailwinds, and GMBL was wise to rebrand in 2017 with the esports moniker. Prior to the change, the business was known as VGambling for the first nine years of its life.
Newgioco Group is a company based in New York City (NWGI)
This sports-betting company was established in 1998 in Toronto, Canada. It may not have the same household name as Churchill Downs, but it is still deserving of investor interest.
Newgioco is a European gaming company that provides both online and offline gaming facilities. It isn’t all about sports betting. Traditional casino games such as poker and slots are available.
With a market capitalization of about $30 million, it is the least valuable of the sports-betting stocks on this list, so keep that in mind before investing. There’s a lot to like with a B overall ranking.
While NWGI stock receives a D in my Portfolio Grader tool for fundamentals, it receives an A on the quantitative side.
Caesars Entertainment (Caesars) is (CZR)
Caesars Entertainment, like Churchill Downs, is a well-known name in the sports betting industry. It’s also a multibillion-dollar casino behemoth.
The business, which was founded in 1937 and is based in Las Vegas, has 49 casinos, 40,000 hotel rooms, 38,000 slot machines, and over 2,700 table games.
The business, formerly known as Harrah’s, is valued at about $8 billion. While analysts expect CZR stock to suffer as a result of this year’s economic climate, revenue is expected to increase by 30% in 2021 as things return to normal and consumers return to the status quo. It’s also worth noting that a merger with ElDorado Resorts (NASDAQ:ERI) is on the cards. CZR, like the other companies on this list, receives a B from my Portfolio Grader tool.
Penn National Gaming is a gaming company based in Pennsylvania (PENN)
Penn National shares have risen 60% in the last year, but they aren’t suitable for all investors. My Portfolio Score gives shares a B overall, but that’s not everything investors should be aware of. They earned a F in fundamentals but an A in quantitative reasoning.
Penn National is worth approximately $4.3 billion, but the F grade in fundamentals is due in part to the company’s high debt load and projected loss of $8.14 per share in 2020.
Although predictions aren’t always accurate, the fact that the market expects Penn National’s revenue to increase by 56% in 2021 makes the gaming and racing business one of the most convincing sports-betting stocks to purchase.
Louis Navellier began his career in an unusual way, as a graduate student who by mistake created a market-beating stock scheme that outperformed even Warren Buffett. Louis’ most recent achievement was the discovery of the “Master Key” to profiting from the greatest technological breakthrough of this (or any) century. Any of the above securities may be held by Louis Navellier in one or more of his newsletters.