Flutter Entertainment Up 25% in 6 Months: What is Driving the Stock?

Flutter Entertainment plc FLUT stock has been on a stellar run, jumping 25.4% in the past six months, significantly outpacing the industry’s modest 5.5% growth. This robust performance underscores Flutter’s impressive momentum and market dominance.The company continues to benefit from the focus on technological advancements, product innovation and market share gains. Continued investment in customer acquisition while maintaining disciplined payback targets bodes well for the company.Indicating the positive sentiment around FLUT, the Zacks Consensus Estimate for earnings per share has seen upward revisions. In the past seven days, analysts have raised their estimates for the next year by 3.1% to $8.66. Let us delve deeper and find out the factors driving this Zacks Rank #1 (Strong Buy) company. Image Source: Zacks Investment Research Factors Aiding FLUT RallyThe NFL season has provided a strong start for FanDuel, contributing to a 36% increase in overall betting handles for third-quarter 2024. Handle growth was particularly notable in states launched prior to 2022, where this rose 23% and in states launched during 2022 and 2023, the number surged 37%. Additionally, the company maintained compelling customer economics, with payback periods averaging 18 months during the quarter, well within its target of 24 months. These metrics underscore the effectiveness of FanDuel’s investment strategy, which prioritizes scaling its business while driving strong customer acquisition, up 10% year over year.Outside the United States, revenues for third-quarter 2024 increased 15% with all segments contributing to the growth. In the United Kingdom and Ireland (“UKI”), strong momentum continued, bolstered by the timing of European football championship marketing, which enhanced operational leverage and drove a 29% increase in EBITDA. Favorable sports outcomes during the quarter added 40 basis points to the sportsbook net revenue margin in the UKI. Similarly, Australia saw a 130-basis-point boost from positive sports results, contributing to a year-over-year revenue increase of 12% and a 14% rise in adjusted EBITDA.Flutter Entertainment delivered impressive sportsbook revenue growth of 62% in third-quarter 2024, fueled by a 36% increase in handle and a 130-basis-point rise in net revenue margin, reaching 8.2%. This improvement was supported by an expansion in structural revenue margin to 12.8%. While favorable sports outcomes contributed to the margin gains year over year, the company reinvested a significant portion of these results into promotional spending, ensuring value was returned to its customers.Additionally, Flutter maintained its strategic focus on customer acquisition and retention through investments with attractive payback periods. Meanwhile, iGaming revenues surged 46%, driven by ongoing enhancements to its product offerings, which continue to bolster customer engagement and growth.Other Key PicksLindblad Expeditions Holdings, Inc. LIND currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks Rank #1 stocks here.The stock has surged 21.3% in the past three months. The Zacks Consensus Estimate for LIND’s 2025 earnings indicates growth of 93.1% from the year-ago levels.Norwegian Cruise Line Holdings Ltd. NCLH presently has a Zacks Rank #2 (Buy). NCLH delivered a trailing four-quarter earnings surprise of 4.2%, on average. The stock has surged 50.9% in the past year.The Zacks Consensus Estimate for NCLH’s 2025 sales and earnings indicates growth of 8.4% and 25.7%, respectively, from the year-ago levels.Royal Caribbean Cruises Ltd. RCL currently carries a Zacks Rank #2. RCL delivered a trailing four-quarter earnings surprise of 16.2%, on average. The stock has surged 88.9% in the past year.The Zacks Consensus Estimate for RCL’s 2025 sales and EPS indicates growth of 9.5% and 23.8%, respectively, from the year-ago levels.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report Lindblad Expeditions (LIND): Free Stock Analysis Report Flutter Entertainment PLC (FLUT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks