Ready Your Game Face With These Sports Betting Picks!

Are you still trying to figure out where to invest? I feel you. Finding the stocks to invest in is difficult. While, as of late, the market has been focusing on big tech, some markets tend to get neglected; one of these sectors is the sports betting industry. This article will look at three sports betting stocks that deserve a look. 

What is sports betting? 

Sports betting is, by the name itself, waging on the outcome of a sports event in the hopes of making a profit. It was once considered illegal but has gained popularity, and legal acceptance shows how sports betting has come a long way. Industry experts expect the sports betting industry to grow at least 10% CAGR by 2030. This allows any investor to diversify their portfolio as the growing sports and esports get included in the betting pool. 

Gambling.com Group Limited (GAMB)

Gambling.com Group Limited is a company that specializes in performance marketing that is actively focused on sports betting and iGaming. The company has a technology platform that markets branded websites like Rotowire.com, Gambling.com and Bookies.com. Each website is tailored to various interests and markets to feature online gaming and fantasy sports, including odds, statistics, product reviews, and comparisons.

The company has been performing well - in fact, it's up 53.55% YTD. Its recent quarterly earnings performance has also beat analyst estimates by 41.67% and grew its depositing customer base by 60%. This has led to an increase in their revenue by 63%. With the growth expected in sports betting, we see GAMB as one company to benefit from additional partnerships.

Analyst Rating

Analysts rate GAMB as a “Strong Buy” based on seven full marks from analysts. The mean target price of GMB is $16.00, and the high price target is $18.00, an upside of 28.11%.

Sportradar Group AG (SRAD)

Sportradar Group AG is a Switzeland-based platform provider for the global sports betting industry. Sportradar is the undisputed market leader in sports data aggregation/distribution and advertising technology services for sportsbooks,  leagues, and media. Sportradar’s solutions help address betting value chains through advertising, traffic generation, processing, and extrapolating data and odds for risk management and visualization.

While the company isn’t experiencing a solid price performance with its 15.56% YTD return, current price corrections offer bullish investors an attractive value proposition as it has been bagging deals to support its growth. SRAD’s notable recent deals include a multi-year deal with US soccer, a 4-year extension of their long-term deal with NASCAR, and a betting partner for Conmebol. These partnerships with the big names in the sports industry provide SRAD with a brighter outlook ahead.

Analyst Rating

Analysts rate SRAD as a Moderate Buy based on 3 Strong buys, 1 Moderate buy, 3 Holds and 1 Moderate sell. The mean target price is $14.19, and the high target price is $20.00, a potential upside of 73.76%.

International Game Technology PLC (IGT)

International Game Technology PLC is a United Kingdom-based firm that operates a portfolio of gaming-related products and services that support iGaming, Sports betting, and instant lottery systems. International Game Technology has three main operational segments: 

• Global Lottery
• Global Gaming
• Digital & Betting

These segments include traditional lottery businesses, global land-based gaming, sports betting, and iGaming services. 

The company has also performed well with its 41.80% price return. The company has been performing well with its earnings, as its current month has beat analyst estimates by 32.25%. Not only that, the company has also scored several deals to boost its long-term earnings. These deals include the cross-border deal of IGT and Française des Jeux (FDJ), the Rio Hotel & Casino management system contract, and its three-year contract extension with AB Svenska Spel. This makes IGT one of our bets for the industry.

Analyst Ratings

Analysts rate IGT as a “Strong Buy” based on five Strong buy analyst recommendations. The mean target price for IGT is $42.40, and the high target price is $54.00, an upside of 27.36%.

Final Thoughts

The sports betting industry has overcome a lot of hurdles to reach the point of becoming a well-accepted form of entertainment for the general public. While gambling may still have a stigma on some people's ideals, it is fair to say that betting on the industry may not be for everyone. However, if you're looking for an industry to diversify your portfolio while capitalizing on a growing trend. If that case, the sports betting industry may be worth the look.

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On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.