The Smart Money Is Betting on These 3 Stocks – 4/24

3 Sports Stocks Beating the Market — Even as the S&P Falls

While the broader markets slide under pressure from macroeconomic headwinds and central bank uncertainty, one niche continues to quietly outperform: sports betting.

So far in April, the S&P 500 is down nearly 9%, rattled by hawkish Fed policy, sticky inflation data, and global economic fears. Yet in the midst of this turbulence, sports betting stocks are showing resilience and even strength, offering a rare bright spot in an otherwise gloomy market.

According to analysts at Roth Capital Partners, the theme of sports gaming is “quietly outperforming expectations.” One of the top proxies for the space—the Roundhill Sports Betting & iGaming ETF (BETZ)—is up almost 2% in April, starkly contrasting the weakness in broader indices.

This divergence is attracting attention from institutional investors and retail traders alike, particularly those looking for exposure to momentum trades with macro-insulated potential. Below are three top picks in the sports betting world that could ride this outperformance even further.

🏈 1. DraftKings Inc. (SYM: DKNG)

Recent Price: $33.74
12-Month Price Target: $58.81
Buy Ratings: Morgan Stanley, Jefferies, Oppenheimer

DraftKings continues to dominate the online sports betting space with a growing footprint across the U.S. and abroad. The company has evolved far beyond fantasy sports, now offering a wide suite of digital gaming services including:

  • Online sports betting

  • Daily fantasy contests

  • Online casinos (iGaming)

  • Lottery courier services

  • Media and branded content

Analysts see DraftKings as a clear category leader with strong brand recognition and aggressive user acquisition strategies. Jefferies recently reiterated a Buy rating, citing ongoing state-by-state legalization momentum and DraftKings’ ability to monetize new markets quickly.

What’s more, the company has shown impressive revenue growth in recent quarters, thanks to high customer retention and increased user engagement. The continued roll-out of legalized online betting across the U.S. provides a strong tailwind for the company’s core business.

Why It Could Run:
DraftKings is well-positioned to benefit from both seasonal sports spikes and long-term regulatory tailwinds. With major events like the NFL Draft, MLB season, and NBA playoffs underway, user activity should remain high, providing near-term catalysts.

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🎰 2. Rush Street Interactive (SYM: RSI)

Recent Price: $11.81
12-Month Price Target: $15.50
Buy Ratings: Jefferies, Benchmark Co., Wells Fargo

Rush Street Interactive (RSI) might not have the household name status of DraftKings, but don’t let that fool you—this is a fast-growing company with serious potential. Operating under the BetRivers, PlaySugarHouse, and RushBet brands, RSI has carved out a strong niche in the online casino and sports betting world.

What makes RSI compelling is its international reach. In addition to its U.S. presence, the company has expanded into Canada and Latin America, diversifying its revenue stream and expanding its total addressable market.

RSI offers:

  • Real-money online casino gaming

  • Online and retail sports betting

  • Social gaming platforms

  • Comprehensive table games and slot offerings

  • Localized betting products tailored to individual markets

The company has also gained a reputation for strong user experiences and customer service, which contributes to high player loyalty and lifetime value.

Why It Could Run:
With a relatively low share price and growing coverage from major firms, RSI is starting to appear on more radars. Wells Fargo recently tagged RSI as a top pick in the small-cap gaming space, citing strong fundamentals and growth outlook. With its presence expanding internationally and margins improving, RSI is an attractive undervalued play on the sector.

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🎮 3. PENN Entertainment (SYM: PENN)

Recent Price: $14.96
12-Month Price Target: $22.86
Buy Ratings: Needham, Susquehanna, Barclays

PENN Entertainment brings something unique to the sports gaming table: an integrated approach. The company combines brick-and-mortar casinos with a growing interactive and media presence—a hybrid model that appeals to both legacy players and the new digital generation.

Through brands like Hollywood Casino, L’Auberge, theScore Bet, and ESPN BET, PENN has diversified its revenue streams across:

  • Traditional gaming (slots, table games, racetracks)

  • Hotel and hospitality services

  • Online sports betting

  • Interactive iCasino offerings

  • Loyalty rewards via PENN Play

The company’s high-profile partnership with ESPN has also added credibility and reach to its sports betting products, while its acquisition of theScore provides a strong foothold in the Canadian market.

Despite macro pressure and a tough consumer environment, PENN has managed to maintain stable revenues and is focusing on cost-cutting and brand expansion to improve profitability.

Why It Could Run:
PENN’s combination of physical and digital infrastructure could give it a strategic advantage as consolidation hits the gaming industry. Analysts believe the stock is undervalued, especially with upcoming catalysts including further ESPN integration and cost efficiency improvements.

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Trump’s 100-Day Plan Triggers Global Retaliation

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