Gambling stocks have generally been considered a safe investment over the past few years. With online casinos increasing in number and popularity worldwide, this has been a consistent growth market. However, as with any stock, it’s susceptible to potential drops in value over time.
But that’s just the risk that you have to take when you start playing the stock market, and with current uncertainties starting to dissipate, could now be the time to
consider investing in gambling shares? We’ve taken a look at some of the top companies in the industry, to help you determine if you should be investing in their stocks.
Gamesys hit lows of $531 Canadian throughout March. This was down from a close figure of $707 in 2019. This shows just how strongly the initial Covid-19 impact affected the company. However, it has managed a sharp turnaround by the midpoint of the year, achieving a high of $931 during April.
This all shows that the market has recovered for Gamesys. A big reason for this is Gamesys having large numbers of online holdings: the impact that rocked the whole market was soon reversed due to online players continuing to use Gamesys’ services. Because Gamesys stocks have held their value since the initial drop in March, it can be considered good for a long-term hold, but not as promising for those looking for fast profits. You may need to give this a little bit more time to see impressive results.
GVC Holdings suffered a sharper drop than Gamesys, as a lot of its subsidiaries are sporting sites. For example, Ladbrokes, Coral, and Sportingbet are just three of the sports-based gambling sites that GVC operates. The lack of sporting events taking place meant that GVC suffered a drop from a high of $948 to a low of $292.
Foodtech startup Grocemania announces nationwide expansion
While GVC has seen a recovery over the past few months, there has been a small drop in recent weeks, but that could see an even bigger recovery as sports starts to make a comeback. For both long-term holds and short-term profits, GVC could be the gambling stock that will bring success.
The Rank Group
The Rank Group has suffered as a result of lockdown restrictions more than other companies. Its stock prices fell to a low of $78 at the height of the lockdown, with the main reason being that it has far more subsidiaries operating brick-and-mortar venues. It means that the business saw a much larger drop off than other companies maintaining a bigger online presence.
Although the stock price has recovered to almost double that of its lowest point, there is still a lot of room for growth. This is because the price is still at less than half of the highest value it managed to achieve over the past six months.
In February, before the lockdown had started to transform life for billions of people, the value of The Rank Group’s stock prices hit its highest point for five years. So, with restrictions slowly being lifted, there is plenty of space for the price to grow. As a result, The Rank Group could well be a stock to hold for big profits in the future.