Just weeks after the 2024 Super Bowl, it’ll be time to put money on the line for March Madness.
For 2023, Statista estimates about $15.5 billion was bet on March Madness games. Heading into March 2024, we don’t have estimates just yet, but we expect to see nearly $20 billion in Madness bets for the year. One of the stocks that could benefit from the games is DraftKings (DKNG), which has already been explosive this year.
For some history, DKNG ran from about $59 to $76 ahead of the 2021 games. In 2022, DKNG ran slightly higher before resuming its downtrend. Last year, it ran from about $18.50 to about $30 a share later in the year.
Analysts at Stifel also like DKNG, upgrading it to a buy rating with a price target of $45. The firm added, “The stock’s recent correction affords an attractive entry point, with the company’s market share headwinds easing,” as quoted by TheFly.com.
Another way to trade March Madness is with an ETF.
Look at the Roundhill Sports Betting & iGaming ETF (BETZ), for example. With an expense ratio of 0.75%, the $16 ETF offers diversification with Entain PLC, Flutter Entertainment, Penn Entertainment, DraftKings, Churchill Downs, MGM Resorts, and many more. What’s nice about an ETF is that it offers greater exposure at less cost.
Or, you can invest in one of the many sponsors of March Madness, including Coca-Cola (KO).
With strong demand, dependable dividends, and incredible earnings growth, Coca-Cola may be one of the best stocks to consider, long-term. Buffett, who drinks about five cans of Coke a day, agrees, once calling KO a “forever” stock. Coca-Cola is also a dividend king, raising its dividend for the last 60+ years. It currently has a yield of 3.09%.
