DraftKings Arrives on BofA’s US 1 List Despite Slight Dip in Stock Price

Over the last month, a decrease was observed in DraftKings’ stock price. Trading at $35.52 as of the market close on Tuesday, the price marked a 19.40% decrease in the last month alone.

Despite the weak performance, DraftKings was recently added to the Bank of America’s US 1 List, a list that gathers some of the best investment ideas, as announced by Seeking Alpha, the leading investing and analysis community. The latest update saw DraftKings join the list together with Kirby Corporation and NVIDIA Corporation.

While those recognizable companies made it to the list, others, such as Marvell Technology and FedEx Corp were excluded. Still, BofA confirmed that it maintains a buy rating for the stocks of the two aforementioned companies, despite their removal from the US 1 List.

“BofA’s US 1 list is intended to represent a collection of its best investment ideas that are drawn from the large universe of Buy-rated, U.S.-listed stocks. The list is actively managed with a goal of providing superior investment performance over the long term,“

explained a statement released by Seeking Alpha

The Betting Giant Joins Recognizable Business on the US 1 List

Companies that are added to BofA’s US 1 List must have an average daily trading volume of a minimum of $5 million for a period of six months before their addition. Usually, the list consists of 30 to 40 stocks.

Still, the minimum number of stocks on BofA’s US 1 List is 25. “The list is rebalanced each time a stock is added or removed. The US 1 List has outperformed the S&P 500 Index over the last year, per independent tracking,” explained the leading investment community.

The addition of DraftKings and NVIDIA to BofA’s list positions the two next to recognizable businesses that have been long-term members, including Amazon, Welltower and Costco Wholesale, among others.

The weak performance demonstrated by DraftKings recently is partly the result of regulatory changes planned in one of the major markets for the company, Illinois. A proposed tax hike in the state seeks to increase the tax revenue from sports betting by raising the betting tax. In light of the planned changes, industry analysts have already warned that a rise in the tax rate may have unintended consequences such as driving customers to the black market.