"3 Growth Stocks Down 18% to 43% to Buy Right Now"
Saturday, Mar 8, 2025 11:16 pm ET
Ladies and gentlemen, buckle up! We're diving into the world of growth stocks that have taken a beating recently, but are poised for a massive comeback. These stocks are down 18% to 43%, but don't let that fool you—this is your chance to buy low and ride the wave of growth. Let's get started!
DraftKings (DKNG): The Comeback Kid
DraftKings has been on a roller coaster ride, down 18% from its 52-week high, but still up 16% year to date. This volatility is a gift for savvy investors. The company is one of the largest online gambling operators in the U.S., capitalizing on the 2018 Supreme Court ruling that legalized sports betting. With over 9.3 million customers, draftkings is a powerhouse in the industry.
Why Buy Now?
1. Expansion into New Jurisdictions: DraftKings is launching its sportsbook in Missouri and has its eyes on California and Texas. This is a massive growth opportunity!
2. Profitability and Revenue Growth: Revenue increased by 39% year over year in the third quarter, and adjusted EPS is expected to reach $0.39 this year. For 2025, revenue growth is forecasted at 30%, with adjusted EPS climbing by 246% to $1.45.
3. Valuation: Trading at 30 times its fiscal 2025 consensus EPS, DraftKings is in line with industry peers but has a unique business model that could make it more structurally profitable.
Flutter Entertainment: The FanDuel Powerhouse
Flutter Entertainment, which controls the FanDuel brand, is trading at a 30 times earnings multiple. This high valuation can make the stock more sensitive to market fluctuations, but it's also a sign of its potential. Flutter faces intense competition, but its strong brand and market position make it a formidable player.
Why Buy Now?
1. Brand Recognition: FanDuel is a household name in the sports betting world, giving Flutter a competitive edge.
2. Growth Opportunities: Expansion into new markets and the continued growth of online gambling present significant opportunities.
3. Valuation: While the valuation is high, it's in line with industry peers, and Flutter's strong market position justifies the premium.
Caesars Entertainment and PENN Entertainment: The Casino Kings
Caesars Entertainment and PENN Entertainment are trading at a P/E ratio closer to 28, making them slightly less volatile compared to their peers. These companies are well-positioned to benefit from the growth of online gambling and the reopening of casinos post-pandemic.
Why Buy Now?
1. Diversified Revenue Streams: Both companies have a mix of online and offline revenue streams, providing stability and growth opportunities.
2. Market Position: Caesars and PENN have strong brand recognition and a loyal customer base, giving them a competitive advantage.
3. Valuation: The slightly lower P/E ratio makes these stocks more attractive for value investors, but they still have significant growth potential.
The Bottom Line
These three growth stocks have taken a beating recently, but they present a compelling opportunity for investors. DraftKings, Flutter Entertainment, Caesars Entertainment, and PENN Entertainment are all poised for growth, with strong market positions, brand recognition, and expansion opportunities. Don't miss out on this chance to buy low and ride the wave of growth!
BOO-YAH! These stocks are winners, and you need to own them now!
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.