#7 - DraftKings (NASDAQ:DKNG)
DraftKings Inc. (NASDAQ: DKNG) is an investment in the gaming industry including the increasingly lucrative sports betting industry. The company, along with FanDuel (parent company Flutter Entertainment plc. (NYSE: FLUT)) control the lion’s share of the sports betting market. That now includes 38 states, but has an opportunity to grow as Texas, California, and Florida have yet to legalize sports betting.
In addition to sports betting, DraftKings has an online casino and owns the Vegas Sports Information Network (VSiN), a multi-platform broadcast and content company. And in February 2024, the company acquired the online lottery platform Jackpocket.
In its November 2024 earnings report, DraftKings posted YoY revenue growth of 39%. If investors have any concerns it would be that the company is not yet profitable and isn’t projected to reach that milestone until 2025. But with a consensus price target of $51.04, you have a potential 18% upside.
About DraftKings
DraftKings Inc operates as a digital sports entertainment and gaming company in the United States and internationally. It provides online sports betting and casino, daily fantasy sports, media, and other consumer products, as well as retails sportsbooks. The company also engages in the design and development of sports betting and casino gaming software for online and retail sportsbooks, and iGaming operators.
Read More - Current Price
- $43.03
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 23 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $51.04 (18.6% Upside)
As you can see, this is just a small sample of the stocks you can confidently buy with $5,000. Not surprisingly, many of these stocks are in the technology sector. In fact, we could have stayed exclusively in the technology sector. But we wanted you to come away with the knowledge that there's a depth and breadth to this market that goes beyond technology stocks.
And investors should also keep their eyes on stocks like Costco Wholesale Corp. (NASDAQ: COST), which didn't make this list because of its current stock price of over $900 per share. However, if the company were to split its stock, it could be an ideal option.
Each of the stocks on this list is priced so that you can buy many full shares with $5,000. In fact, some of the stocks are priced so you can buy 100 or more shares. While you shouldn't pursue a strategy of diversification for its own sake, it's important to consider spreading that $5,000 over more than one stock and sector. That's a solid way to help protect you against the downside risk that comes from any individual stock.
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