There’s hope for sports stocks to rise back following the COVID-19 restrictions in 2020. Let’s have a look at the potential long-term stocks for investment.
The COVID-19 pandemic has shrunk a widesports industry. For most of the summer period, the sports activities were paused due to lockdown. When sports operations were resumed after a while, the audiences were not allowed to go to stadiums. And, still, audiences are restricted to watch live games at home in U.S. and other parts of the world.
3 Tiny Stocks Primed to Explode
The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.
We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.
Click here for full details and to join for free
Sponsored
Get the hottest stocks to trade every day before the market opens 100% free. Click here now.
Due to pandemic restrictions, the sports industry has had a massive impact. Many of the big sporting events across the globe have been postponed. However, the vaccine news has given a lot of hope to the stock market.
In November, sports stocks bounced back showing strong promise as we head into the new year. Sportico’s John WallStreet Sports Stock Index surged over 20% in the last month.
DraftKings (DKNG)
The fantasy sports betting and contest operator, DraftKings (DKNG) is making big bucks in its niche market. The fantasy sport is a massive industry these days and DraftKings has a stronghold in the market.
DraftKings has emerged as a major platform in traditional gaming business, too. Its online sportsbook business is also booming along with its fantasy sports.
In the past quarter, the revenue increased by 42% on a pro forma basis, while the audience has increased by a whopping 64% from last year. The company records over 1 million monthly unique paying customers on its network.
Moreover, the fantasy sports network is making new collaborations with leading sports-viewing outlets. This helps DraftKings to get more inside updates on the future bets on fantasy sports.
DraftKings has raised this year’s outlook with its sales expected around $540 million to $560 million, which shows a growth of 25% to 30%. The company also projects a fast-growing 2021, with anticipated sales increasing by 45% in 2021. This means that DraftKings (DKNG) will have sales between $750 million to $850 million.
Madison Square Garden Entertainment (MSGE)
The Madison Square Garden Entertainment (MSGE), which is known for sports venues, has also been affected by the pandemic. The company’s most famous and historic course Madison Square Garden is MSGE’s most valuable sporting venue in the world.
Get the hottest stocks to trade every day before the market opens 100% free. Click here now.
The company is also working on two other major stadiums in Las Vegas and London. The fact that lockdown is still effective, which means that people can’t go to stadiums to watch their favorite matches. With that being said, it doesn’t mean that it would last forever.
The company is well-positioned until MSGE welcomes backs the fans to its stadiums. Thanks to its $1.2 billion in cash, an amount which MSGE generated by a recent sale of its Forum to Steve Ballmer.
Things will take a bit of time to get on track, and with the vaccine deployment, stadiums will get opened probably by mid-2021. However, it still depends upon the COVID-19 situation and how well the things go along with the vaccine operation.
If you are looking for a sports stock, MSGE is a decent buy now with an upside potential going forward.
World Wrestling Entertainment (WWE)
One of the most suitable investments during this pandemic period; World Wrestling Entertainment (WWE) is one of few sports networks that have kept things going during the hard phase of COVID-19.
According to Forbes, “with the stock still almost 40% below the levels seen at the end of 2019, we think it still has potential to rise further despite a good recovery over the recent months.”
The best thing for WWE is its paid subscription and live events. In the second quarter of 2020, 18% of the company’s revenue came from live events. That was the main reason, why WWE’s revenue from live events skyrocketed up to 98% during Q2.
WWE has kept things moving nicely.WWE will normalize its operations across different stadiums in the U.S. and U.K., once things get better.
Get the hottest stocks to trade every day before the market opens 100% free. Click here now.
The long-term potential is there and it’s one of the safest buys in the sports stock today.
