Flutter Entertainment Up 28% in 3 Months: How to Play the Stock

Flutter Entertainment plc FLUT stock has experienced a remarkable gain in the past three months. In the past three months, the stock has surged 27.8%, outperforming the industry and the S&P 500’s growth of 20.8% and 11.4%, respectively.FLUT, which ended Friday’s trading session at $280.38, is trading just 1.5% below its 52-week high, but 77% above 52-week low. Other major industry players like DraftKings Inc. DKNG MGM Resorts International MGM and Boyd Gaming Corporation BYD rose 20.9%, 5.1% and 27.7%, respectively, in the past three months.Stock Price PerformanceImage Source: Zacks Investment ResearchFactors Favoring FLUT StockThe NFL season provided a strong start for FanDuel, contributing to a 36% increase in overall betting handle for third-quarter 2024. Handle growth was particularly notable in states launched prior to 2022, where it rose 23%, and in states launched during 2022 and 2023, where 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.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 bode well for the company. FLUT is confident in achieving long-term gross revenue margin targets of 16% through sustained operational improvements.Estimate Revision Favoring FLUT StockIndicating the positive sentiment around FLUT, the Zacks Consensus Estimate for earnings per share has seen upward revisions. In the past 30 days, analysts have raised their estimates for the current and the next year by 1.4% to $5.85 and 4.2% to $8.40 per share, respectively.FLUT Trading at a PremiumThe company is currently valued at a premium compared with the industry on a forward 12-month P/E basis. FLUT’s forward 12-month price-to-earnings ratio is 33.99, higher than the industry  and the S&P 500's ratio of 33.59 and 22.82, respectively.ConclusionFlutter Entertainment has demonstrated exceptional performance, driven by strong execution in its U.S. operations through FanDuel and steady growth across international markets. The company’s focus on product innovation, customer acquisition and disciplined financial strategies has allowed it to capitalize on expanding markets like sports betting and iGaming. With a proven ability to outperform peers, sustained operational improvements and upward earnings revisions indicating positive sentiment, Flutter is positioned as a leader in its industry. While trading at a premium, its strategic initiatives and consistent market share gains make the stock an attractive investment for long-term growth potential. FLUT currently sports a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.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 MGM Resorts International (MGM): Free Stock Analysis Report Boyd Gaming Corporation (BYD): Free Stock Analysis Report DraftKings Inc. (DKNG): 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