Top 3 Sports Betting Stocks to Monitor Before Earnings Report
Investors in the sports betting sector are keeping a close eye on three major companies set to report their earnings soon. DraftKings Inc. (NASDAQ: DKNG) and PENN Entertainment Inc. (NASDAQ: PENN) are both due to announce their third-quarter results on November 12, 2023. Meanwhile, Flutter Entertainment PLC (NYSE: FLUT) is also preparing to release its financial report at the same time.
DraftKings Inc. Performance Overview
DraftKings is experiencing a challenging period, with its stock recently trading at $28.57, marking a 0.1% decline. Year-to-date, DKNG has encountered a significant downturn, down 23.9%. The stock hit a two-year low of $28.04, struggling to overcome resistance from the 20-day moving average.
- Recent Trading Price: $28.57
- Year-to-Date Change: -23.9%
- Post-Earnings Average Move: 6.3%
- Expected Post-Earnings Move: 13.9%
Despite recent struggles, DraftKings has typically responded well after earnings announcements, with five out of the past eight sessions closing higher. In February, it experienced a notable 15.2% increase after reporting earnings.
PENN Entertainment: Analyzing Recovery
PENN Entertainment is currently trading at $16.55, reflecting a 2.3% increase. However, the stock has seen a significant 16.8% drop in 2023. The $16 level has acted as a vital support point, previously stabilizing the stock in both August and October.
- Current Trading Price: $16.55
- Year-to-Date Change: -16.8%
- Average Post-Earnings Move: 6.8%
- Expected Post-Earnings Move: 10.2%
PENN’s earnings history is less favorable, having closed down following five of the last eight earnings reports, indicating potential concerns for investors.
Flutter Entertainment: Monitoring a New Entrant
Flutter Entertainment, although the newest among the three, is not exempt from market pressures. The stock is trading at $215.94, having declined by 2.7%. Over the past three months, FLUT has suffered a loss exceeding 30% and is currently facing resistance at the $260 mark.
- Current Trading Price: $215.94
- Three-Month Change: -30%
- Average Post-Earnings Move: 5.1%
- Expected Post-Earnings Move: 7.5%
With only five prior earnings reports since its public debut in January 2024, FLUT has achieved gains following three of these announcements, making it a unique player to watch.
Conclusion
As November approaches, all eyes will be on DraftKings, PENN Entertainment, and Flutter Entertainment. Investors are eager to see how these companies will react post-earnings, especially given the volatility surrounding DraftKings and the consistent support level for PENN. The anticipated moves could provide valuable insights into the future trajectory of this competitive sector.
