USB Endorses Fox Gambling Stock in Recent Update

Gambling stocks were routed in 2021 and the outlook for 2022 isn’t all too good. After reports that Wynn will put its interactive wagering division for sale, investors have begun asking if putting their money in gambling stocks is wise anymore.

Fox Gambling Stock Shows Strength

According to UBS analyst John Hodulik, there are still those stocks that are worth buying. In a note to clients, Hodulik recommended Fox as “buy,” changing the rating from “neutral”. His note read:

“Within traditional Media, we believe FOX is better positioned given sports betting optionality, measured direct-to-consumer (DTC) spend and leadership within the legacy (albeit declining) Pay TV bundle with its sports and news focus.”

USB analyst John Hodulik

Gambling stocks have been buffeted by myriad adversities over the past two years. The pandemic suppressed the retail casino operators, but it gave a quick boost to their interactive counterparts. While revenue continued to climb through 2021, the stock market remained moribund so far as gambling participants go.

Regardless, there have been recommendations to snap the occasional asset. Goldman Sachs said earlier this month that Las Vegas is a good cheap gambling stock with a strong long-term prospect. Investors jitters were noticeable all over the market in January, though, as Macau shifted towards a new reading of its casino concession laws, reducing the 20 license period to just six years now.

Fox in Great Position to Benefit from Sports Betting

So far as Fox goes, the media has been able to expand well beyond the betting experience alone. The broadcast group and betting operator has been able to secure the rights for major events such as the MLB, NFL, NCAAB, and NCAAF, and not least – international soccer contests.

While Fox caused a bit of a stir by associating itself directly with the FOX Bet brand, the company has followed in common wisdom which argues that the sports betting market will be adopted into the mainstream and not be taboo. In fact, it already has.

Gambling stocks, though, are still finding their way out of the recent dip that began in mid-2021. According to some analysts, including Mad Money host Jim Cramer, online gambling stocks are still a good investment, although the sector may be too heavily saturated at present rates and needs more consolidation for stocks to truly start paying off.