Zacks Investment Ideas feature highlights: DraftKings, Flutter Entertainment, MGM Resorts and Bank of America

For Immediate Release

Chicago, IL – September 11, 2024 – Today, Zacks Investment Ideas feature highlights DraftKings DKNG, Flutter Entertainment FLUT, MGM Resorts MGM and Bank of America BAC.

NFL Kicks Off: Time to Bet on DraftKings?

DraftKings Company Overview

Zacks Rank #3 (Hold) stock DraftKings is an internet-based betting app that allows users to bet on sports in regions where it is permitted. DraftKings also offers a fantasy sports segment where users can assemble teams of real players and earn points based on how those players perform in actual games. On DraftKings you can bet on anything from obscure sports like cycling and cricket to mainstream sports like football and basketball.

FanDuel and DraftKings are Sports Betting Leaders

DraftKings is the third-largest sports book in the United States behind Flutter Entertainment, which owns the popular FanDuel platform and MGM Resorts. Though DraftKings is smaller than FLUT and MGM, its revenue is growing the fastest, and its results are consistent. Flutter has seen low double-digit revenue growth with mixed EPS results, while MGM has not been able to reach double-digit revenue growth for the past few quarters. Conversely, DKNG has produced juicy mid-to-high double-digit revenue growth for several years.

DraftKings to Swing to Profit

Wall Street analysts tracked by Zacks Investment Research anticipate a landmark 2025 for DraftKings. Zacks Consensus Estimates suggest that DKNG will swing from an annual loss of $0.31 to a profit of $0.31.

Over the next few years, DraftKings should benefit from two driving forces:

1. A Growing Betting Market: According to Statista online sports betting revenue will reach $45.18 billion in 2024 and grow to ~$65 billion by 2029.

2. Legalization: DKNG’s total addressable market should increase over the next 3-5 years as states legalize sports betting. Sports betting is illegal in roughly half U.S. states. However, as budget deficits continue to balloon, more states will likely to turn to sports betting as a much-needed tax revenue source.

New Live Betting Features Will Help DraftKings Catch FanDuel

FanDuel has acquired more customers than DraftKings due to its unique suite of betting options such as live betting (betting in the middle of games). CEO Jason Robbins addressed this at a recent Bank of America gaming conference saying that the company is unveiling an improved interface for live betting on the NFL. Meanwhile, DraftKings is growing its business through M&A as well. The company recently purchased Simplebet, a provider that will allow DraftKings to offer more “micro-bets.”

Story continues

DraftKings Breakout

As buzz about the football season increases, DKNG shares want to break out of a long channel within an existing uptrend.

Conclusion

DraftKings is a leading internet-based sports betting and fantasy platform that should benefit from sports betting legalization, rapid revenue growth, and new features.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Bank of America Corporation (BAC) : Free Stock Analysis Report

MGM Resorts International (MGM) : Free Stock Analysis Report

DraftKings Inc. (DKNG) : Free Stock Analysis Report

Flutter Entertainment PLC (FLUT) : Free Stock Analysis Report

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