(C) Reuters. Forget Draftkings, these 2 Sports Gambling Stocks are Better Buys
Even though DraftKings (NASDAQ:DKNG) is a top player in the sports gambling space, it seems to be significantly overvalued now. So, we think it’s wise to bet on Boyd Gaming (NYSE:BYD) and William Hill (WIMHY) instead because their financials and growth prospects justify their valuations. Read on.Sports betting company DraftKings Inc. (DKNG) has been on a roll, gaining 191.2% over the past year to close Friday’s trading session at $56.66. On April 15, DKNG and the National Football League (NFL) announced that DKNG will become an official sports betting partner of the league, and that it had extended its current relationship as the NFL’s exclusive official daily fantasy partner. However, the stock has lost more than 7% over the past month.
The stock is currently trading at an expensive valuation, which is not justified by its fundamentals and growth prospects. DKNG’s 19.92x forward EV/Sales is 1,061.7% higher than the 1.71x industry average. And the stock’s 21.58x forward Price/Sales is 1,463.6% higher than the 1.38x industry average. However, the company’s EPS is expected to remain negative in fiscal 2021 and fiscal 2022.
While DKNG may not be a good bet now, the sports gambling industry has been gaining investors’ attention owing to the increasing legalization of sports gambling across several states. So, we think it’s wise to bet on Boyd Gaming Corporation (BYD) and William Hill PLC (WIMHY), which are growing steadily and increasing their market reach.
Forget Draftkings, these 2 Sports Gambling Stocks are Better Buys
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