Is Now The Time To Buy These Top Online Gambling Stocks?
There are two sides to gambling stocks and one is struggling while another is striving. These two sides consist of casinos and online gambling. Can you guess which one is struggling? That’s right, most if not all physical casinos were forced to shut down back in March when the pandemic took over. These stocks have the potential to surge when casinos are able to open and there is a COVID-19 vaccine in use.
When it comes to online gambling stocks, these companies have been striving. Since people can not go to casinos to gamble, they have turned to online gambling as a new source. One of these popular mediums is sports gambling. The return of live sports has made online sports gambling see big numbers in recent times. So let’s take a look at three gambling stocks to watch.
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Top Online Gambling Stocks To Buy [Or Avoid] In 2020: DraftKings Inc.
The first gambling stock on this list is DraftKings Inc. (DKNG Stock Report). DraftKings is a fantasy sports and sports betting website. The site allows you to put money into many different leagues such as the NFL, NHL, NBA, MLB, and many more. In many US states, fantasy sports is considered a skill game rather than a gamble. DraftKings has more than 10 million users worldwide. In recent news, DraftKings is trending due to its “outperform” rating and price target from Evercore. This price target from Evercore of $60 predicted that it will rise 60% from $37 a share.
This report is based on the assumption that DraftKings will profit from changes in the US sports betting policy. This report has caused DKNG stock to go from $37 a share to now $42.54 a share on average as of September 10th. The company also recently signed Michael Jordan as a special advisor to the company, which caused an 8% one day rise on that day. That is why DKNG stock is a gambling stock to watch.
Top Online Gambling Stocks To Buy [Or Avoid] In 2020: Penn National Gaming Inc.
Next up to discuss is Penn National Gaming Inc. (PENN Stock Report). Penn National Gaming is a gaming and racing company that owns many properties. The company operates video gaming slot machine terminals as well. Penn National additionally offers live sports betting in many places as well. It owns the iCasino online casino platform in Pennsylvania too. As of March 2020, Penn National Gaming owns or has an interest in 41 gaming and racing properties.
Currently, Penn claims it has a significant market share in the online sports betting niche. A PENN stock analyst issues a Street-high price target claiming it to hit $300 if everything goes according to plan. Other analysts believe Penn National will reach an $80 price target. Rosenblatt Securities analyst Bernie McTernan said, “With a unique, content-focused strategy, we believe PENN has the opportunity to gain significant share in the online sports betting market at above peer margins driven by their Barstool partnership and physical footprint.” From September 3rd to the 10th, PENN stock price is up more than 12%. On the 10th, PENN stock is up 7%.
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Top Online Gambling Stocks To Buy [Or Avoid] In 2020: GAN Limited
The final gambling stock on this list is GAN Limited (GAN Stock Report). GAN Limited provides software solutions for online casino gaming and online sports betting websites. It offers its online gambling enterprise software system, GameSTACK. It licenses its software to US casino operators. On August 20th, GAN reported its second-quarter financial results for 2020. These results included that revenue had increased 99% year over year. There was additionally a 110% increase in real money internet gambling revenue to $5.7 million.
The CEO of GAN, Dermot Smurfit said, “We were pleased to achieve revenues of $8.3 million during the second quarter of 2020, a period during which nearly all of our land-based casino customers were forced to close their physical operations and when most major sporting events were canceled as a result of the global pandemic.” In 2020, GAN stock is up more than 48% a share. That is why it is on this list of gambling stocks to watch.
What Now
It seems like there is a lot of factors driving up the price of online gambling stocks. If sports betting laws are put in place then many of these companies will benefit from it. There is no end in near sight for the pandemic which is allowing these online gambling companies to continue to strive. That is why DKNG stock, PENN stock, and GAN stock are all on this list of gambling stocks to watch.
