S&P 500   5,064.99 (+1.67%)
DOW   38,898.74 (+0.74%)
QQQ   435.45 (+2.31%)
AAPL   182.90 (+0.32%)
MSFT   410.86 (+2.16%)
META   485.01 (+3.63%)
GOOGL   143.97 (+1.00%)
AMZN   172.48 (+2.31%)
TSLA   194.11 (-0.34%)
NVDA   776.86 (+15.14%)
NIO   5.75 (-3.69%)
AMD   180.23 (+9.70%)
BABA   75.52 (-0.08%)
T   16.61 (-2.29%)
F   12.21 (+0.58%)
MU   85.39 (+4.79%)
CGC   3.42 (-0.58%)
GE   151.79 (+1.82%)
DIS   108.13 (+0.43%)
AMC   4.58 (+0.22%)
PFE   27.27 (-1.45%)
PYPL   57.54 (+0.10%)
XOM   104.38 (-0.45%)
S&P 500   5,064.99 (+1.67%)
DOW   38,898.74 (+0.74%)
QQQ   435.45 (+2.31%)
AAPL   182.90 (+0.32%)
MSFT   410.86 (+2.16%)
META   485.01 (+3.63%)
GOOGL   143.97 (+1.00%)
AMZN   172.48 (+2.31%)
TSLA   194.11 (-0.34%)
NVDA   776.86 (+15.14%)
NIO   5.75 (-3.69%)
AMD   180.23 (+9.70%)
BABA   75.52 (-0.08%)
T   16.61 (-2.29%)
F   12.21 (+0.58%)
MU   85.39 (+4.79%)
CGC   3.42 (-0.58%)
GE   151.79 (+1.82%)
DIS   108.13 (+0.43%)
AMC   4.58 (+0.22%)
PFE   27.27 (-1.45%)
PYPL   57.54 (+0.10%)
XOM   104.38 (-0.45%)
S&P 500   5,064.99 (+1.67%)
DOW   38,898.74 (+0.74%)
QQQ   435.45 (+2.31%)
AAPL   182.90 (+0.32%)
MSFT   410.86 (+2.16%)
META   485.01 (+3.63%)
GOOGL   143.97 (+1.00%)
AMZN   172.48 (+2.31%)
TSLA   194.11 (-0.34%)
NVDA   776.86 (+15.14%)
NIO   5.75 (-3.69%)
AMD   180.23 (+9.70%)
BABA   75.52 (-0.08%)
T   16.61 (-2.29%)
F   12.21 (+0.58%)
MU   85.39 (+4.79%)
CGC   3.42 (-0.58%)
GE   151.79 (+1.82%)
DIS   108.13 (+0.43%)
AMC   4.58 (+0.22%)
PFE   27.27 (-1.45%)
PYPL   57.54 (+0.10%)
XOM   104.38 (-0.45%)
S&P 500   5,064.99 (+1.67%)
DOW   38,898.74 (+0.74%)
QQQ   435.45 (+2.31%)
AAPL   182.90 (+0.32%)
MSFT   410.86 (+2.16%)
META   485.01 (+3.63%)
GOOGL   143.97 (+1.00%)
AMZN   172.48 (+2.31%)
TSLA   194.11 (-0.34%)
NVDA   776.86 (+15.14%)
NIO   5.75 (-3.69%)
AMD   180.23 (+9.70%)
BABA   75.52 (-0.08%)
T   16.61 (-2.29%)
F   12.21 (+0.58%)
MU   85.39 (+4.79%)
CGC   3.42 (-0.58%)
GE   151.79 (+1.82%)
DIS   108.13 (+0.43%)
AMC   4.58 (+0.22%)
PFE   27.27 (-1.45%)
PYPL   57.54 (+0.10%)
XOM   104.38 (-0.45%)

3 Sports Betting Stocks That Don’t Feel Like a Gamble

sports betting stocks

Key Points

  • Sports betting is expected to grow at a CAGR of 10.3% from now to 2030. 
  • In 2022, that growth wasn't evident in many sports betting stocks. 
  • MGM International has been one of the strongest stocks in the last 12 months and is scheduled to post strong earnings and revenue growth in the next five years. 
  • DraftKings is starting to lay claim to being the king of the online sportsbook industry. 
  • Boyd Gaming may be the best of the bunch among investors looking for consistent growth and a company that is already posting strong earnings.  
  • 5 stocks we like better than DraftKings

The legalization of sports betting is one of the leading economic stories in a post-pandemic world. But investing in sports betting stocks has been a cautionary tale for investors. The revenue that sports betting helps provide to state budgets ensures that it’s a sector that will continue to grow.  

According to Grand View Research, the global sports betting market totaled $83.65 billion in 2022. That number is expected to grow at a CAGR of 10.3% from now until 2030. 

But there are a lot of companies that are chasing that growth. That’s the problem that investors are facing. None of these companies appears to have a very wide moat. Another factor that should concern investors is that every company, for the most part, offers the same services. 

That means that investors need to go back to the fundamentals. As boring as fundamentals seem, it may be the best way to ensure you’re gambling on sports and not on the stocks you invest in. Here are three choices for you to consider. 

What Have You Done for Me Lately? 

The first of the three sports betting stocks to consider is MGM Resorts International NYSE: MGM. The company combines the benefits of a sportsbook (BetMGM) with a portfolio of brick-and-mortar casino properties. The latter stands to benefit from the reopening of Macau casinos.  

The company’s earnings have taken a beating in the last three years. But in its last earnings report, MGM reported record revenue of $3.59 billion and an unexpected profit of 69 cents per share.  

That made it three out of four profitable quarters for MGM. And the company is guiding to earnings per share of 87 cents for 2023. That’s in-line with the mid-point of analysts’ estimates. In addition to that, MGM is expected to post average EPS growth of approximately 27% in the next five years with revenue averaging high single-digit growth in that same timeframe.  

 The company has a trailing price-to-earnings (P/E) ratio of 12.48 and a debt-to-income ratio of around 1.30%. MGM stock is up 8.3% in the last year. Analysts tracked by MarketBeat.com give MGM stock a price target of $51.61, a 22% gain from the current price.  


The King Continues to Go After the Throne 

DraftKings Inc. NASDAQ: DKNG stock is among the biggest winners in the last 12 months. DKNG stock is up 17.8% in the last 12 months. And the stock is up over 80% from when it went public in 2019.  

Some investors will point out that the stock is down 76% from its peak in 2021. But DraftKings, perhaps unfairly, was caught up in the meme stock movement. That’s why I prefer to look at the company’s growth longer. And what I see is revenue that is growing strongly on a year-over-year basis.  

The one question that investors will ask is when can they expect profit? Some analysts believe that could come as soon as the end of 2023. The consensus seems to be 2025. That may be enough to keep you on the sidelines. But here’s something to consider: revenue continues to grow even as the company's sales and marketing expenses go down. That means that customers are staying on the platform.  

The Best of the Bunch? 

Boyd Gaming Corp. NYSE: BYD is the only one of the three stocks on this list which has a negative share price in 2022. BYD stock is down about 4%. But looking at the big picture, the company has one of the strongest stories in the industry.  

Like MGM International, Boyd offers consumers access to on-site gambling at 28 gaming properties in 10 states. And it also offers mobile betting through its partnership with FanDuel.  

Currently, Boyd Gaming has a P/E ratio of just over 10x earnings. While earnings are “only” supposed to average high single-digit growth in the next five years, it’s worth noting that Boyd Gaming became strongly profitable in 2021 after not posting a profit (along with the rest of the industry) 2020.  

 

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Should you invest $1,000 in DraftKings right now?

Before you consider DraftKings, you'll want to hear this.

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While DraftKings currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
MGM Resorts International (MGM)
4.9355 of 5 stars
$42.69+0.9%N/A13.47Moderate Buy$54.57
DraftKings (DKNG)
3.3567 of 5 stars
$41.13+0.9%N/A-23.50Moderate Buy$42.67
Boyd Gaming (BYD)
4.9172 of 5 stars
$63.46+1.3%1.01%10.40Moderate Buy$75.67
Compare These Stocks  Add These Stocks to My Watchlist 

Chris Markoch

About Chris Markoch

  • CTMarkoch@msn.com

Editor & Contributing Author

Retirement, Individual Investing

Experience

Chris Markoch has been an editor & contributing writer for MarketBeat since 2018.

Areas of Expertise

Value investing, retirement stocks, dividend stocks

Education

Bachelor of Arts, The University of Akron

Past Experience

InvestorPlace


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