Hot Stock:
Penn National Gaming (PENN) — $65.69
Penn National Gaming is one of the nation’s largest operators of casinos and racetracks. The company is slowly attempting to control the sports betting industry. In January, Penn purchased a 36% stake in Barstool Sports, the popular sports and pop culture blog with a large social media presence. This deal provided Penn with immense promotional benefits, as Barstool can solely reference sports betting related to the company. The collaboration resulted in the Barstool Sportsbook, a sports betting app.
With the current state of sports, a renewed emergence of sports betting is inevitable. The shutdown of casinos and racetracks has rapidly increased the popularity of sports betting. With each state moving towards the legalization of sports in the coming years, companies like Penn are striving for positions atop the industry. The pandemic has served to promote this industry, and Penn’s ability to capture an online presence through Barstool will help them in efforts to expand the company.
A small stall in the market is expected due to the conclusions of many professional seasons. But this stall will be shorter than people anticipate. In order to maintain a normal schedule, many leagues will have to cut the season short and move quickly into the 2021 seasons. This swift turn around will immediately revive the stock. The growth of national sports betting coupled with the Barstool Sports partnership ensures a bright future for Penn. Look out for the company’s 2020 third quarter financial reports on October 29th.
Stock to Consider:
Zillow (ZG) — $105.59
Zillow stock has been ticking up due to the recent online migration forced by the pandemic. With Zillow, customers can virtually walk through, view, and even buy a new home without ever leaving the safety of their home. The pandemic has also unexpectedly resulted in a seller’s market for real estate, with sales increasing substantially during the past year.
Zillow’s business model is observed to be very safe, as they act as a middle man between the buyer and seller, but do not own equity in the homes they list. Their primary function is to connect sellers with potential buyers while withholding a small percentage of the sale. Zillow is adequately positioned to benefit from this current market, and is projected to perform well regardless of the market.
Dark Horse of the Week:
Altria (MO) — $40.38
Altria is one of the world’s largest tobacco companies and owns well known products such as Marlboro Cigarettes and Juul. Although the stock price has been trending downward for the past 5-years, investors hope to see a jump like that of the Boston Beer Company. Historically, during times of economic hardship and depression, alcohol and tobacco sales increase substantially. Altria is a global player in the tobacco industry and will be protected by their wide variety of diversified assets even after the pandemic. Plus, Altria is an enormous company with a 75.042 billion dollar market cap, making them a neutral hold.
