FanDuel parent Flutter Entertainment (FLUT) — along with fellow gambling stocks DraftKings (DKNG), Las Vegas Sands (LVS), Rush Street Interactive (RSI) and Sportradar (SRAD) — headline this week's analysis of ideas from a particular industry.
All of the stock picks come from Investor's Business Daily's Leisure-Gaming/Equipment industry group, which ranks a strong No. 29 out of the 197 groups IBD tracks. Historically, winning stocks are in the top 40 industry groups, so investors should focus their research on that section of the performance table.
The ranking for the gambling group has vastly improved from where it was three months ago, at No. 118. A stock's industry ranking is available on IBD Stock Checkup. The MarketSurge chart is another good resource. Further, the MarketSurge industry group analysis can provide a group's rankings over the past six months.
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Flutter stock is trying to break out past a cup base's 299.73 buy point, per IBD MarketSurge. The 5% buy zone runs up to 314.72.
Flutter's second-quarter 2025 results are due late Thursday. Wall Street expects the company will earn $2.24 per share on revenue of $4.13 billion, per MarketSurge.
Flutter — the parent company behind sports betting and gambling platforms FanDuel, Paddy Power and others — is concentrating its focus on the U.S.
The stock has a 21-day average true range, or ATR, of 2.16%. The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks with a high ATR tend to make large price moves that can trigger sell rules. Further, stocks with lower ATRs tend to make more incremental moves.
With the S&P 500 and Nasdaq still in uptrends, investors can buy stocks with ATRs of up to 8%, though they should be wary of being too concentrated in high-octane names.
On July 31, Rush Street soared 25% after the company reported better-than-expected results for the second quarter and raised its full-year 2025 sales outlook.
"The positive momentum across our markets are far outweighing any headwinds from any increased taxes in the U.S. and Colombia," Chief Executive Richard Schwartz said on the earnings call.
Rush Street earned 11 cents per share on revenue of $269.2 million, for increases of 175% and 22%, respectively.
Founded in 2012, Chicago-based Rush Street operates online gaming platforms that offer a wide range of casino games and sports betting options. Rush Street focuses on markets in the U.S., Canada and Latin America. Its brands include BetRivers, PlaySugarHouse and RushBet. Rush Street was an early entrant in many regulated jurisdictions.
Big international growth is a key catalyst for Rush Street stock, with Latin American monthly active users jumping nearly 42% to 403,000 vs. the year-ago period.
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DraftKings stock is trading in a 5% buy zone above a 43.59 cup-with-handle entry, even as shares reversed sharply lower Thursday midday.
Late Wednesday, DraftKings reported earnings of 38 cents per share on 37% revenue growth to $1.51 billion. FactSet expected earnings of 15 cents per share on $1.42 billion in revenue.
DraftKings reported that adjusted earnings increased to 38 cents per share, while analysts expected 39 cents per share.
DraftKings maintained its revenue forecast for the year, which the company lowered in the first quarter to range from $6.2 billion to $6.4 billion, from $6.3 billion to $6.6 billion. CEO Jason Robins noted that DraftKings expects revenue to be closer to the high end of the range.
Elsewhere, casino operator Las Vegas Sands is trading at the top of its buy range, above a 50.67 handle entry.
On July 23, Las Vegas Sands earnings jumped 44%, snapping a three-quarter streak of declining growth. Sales climbed 15%, to $3.18 billion, driven by strength in its Singapore and Macao businesses.
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Sportradar has plunged this week in the wake of the company's second-quarter earnings report. Even though the company beat estimates and raised its full-year 2025 outlook, the stock still tumbled nearly 6%. Shares are attempting to find support around their 10-week line, which is a key level to watch.
A strong rebound from here would place the stock in a new buying area, but a sharp breach of that level would trigger a sell signal. Meanwhile, the stock has given up the bulk of its gains from a 25.85 cup-base entry.
Switzerland-based Sportradar collects, analyzes and provides sports data for bookmakers, sports federations and media companies. The company's partners and clients include the National Basketball Association, Major League Baseball, the National Hockey League and Nascar, as well as various soccer leagues and tennis tours. Corporate partners include FanDuel, DraftKings, ESPN and Caesars Sportsbook.
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Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on artificial intelligence stocks, other best stocks to buy and watch and the Dow Jones Industrial Average.
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