Sports betting legalization is sweeping the NFL, so keep an eye on PENN and DKNG
The NFL season kicked off just last week, already providing sports bettors with some upsets. The American Gaming Association expects $35 billion in wagers this season amid the widespread legalization of sports betting, drawing the attention of plenty of investors. With this in mind, we're checking in with two heavy hitters in the sports betting industry: DraftKings Inc (NASDAQ:DKNG) and Penn Entertainment Inc (NASDAQ:PENN).
PENN has had a volatile few months, with pressure at the 200-day moving average as well as the $20 region. Down 2.9% to trade at $17.55 today, the equity is adding to its 32.3% year-to-date deficit.
Despite the red ink in 2024, there's not a single "sell" rating among the 19 analysts covering the security. Should Penn stock continue to underperform, downgrades could add pressure to the equity.
DKNG, on the other hand, is up 2% to trade at $35.82 at last glance, after Needham reaffirmed its "buy" rating on the stock. Today's pop has the equity breaking into positive territory for 2024.
Call traders have been targeting DraftKings stock at a much faster-than-usual rate too, as its 50-day call/put volume ratio of 4.16 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than all other readings from the past year.