The NFL season is almost here. These stocks could benefit — for a few days


The NFL season is fast approaching, and this excitement could create an opportunity for short-term trading in a market that caters to fans of football. The 2023 NFL season begins on Sept. 7 with the Super Bowl champion Kansas City Chiefs playing the Detroit Lions. According to a note released by Bank of America’s consumer trading desk on Wednesday, the next few days may offer a great short-term opportunity for sports betting stocks. Bank of America reports that over the last three years the custom index of the company tracking the sports betting sector has increased in the five days before the first game of the season. In two of these years, however, the gains were wiped out in the first 10 days following the game. The note stated that “Online Gaming stocks tend to rally before and during the NFL Season but less so afterwards.” Legalized online sports betting in the U.S. is relatively new, so sample size is limited. To see if the trend continues in 2023, there are several candidates for trade to keep an eye on. DraftKings is the largest pure-play online betting stock in America, with a value of over $12 billion. DraftKings shares have soared more than 150% this year. The stock price of DKNG has more than doubled since 2023. Wall Street also likes the stock. Refinitiv reports that 21 out of 32 analysts who cover DraftKings rate the stock as a strong or buy. Investors can also consider companies like Ceasars Entertainment or MGM Resorts International, which operate both physical and online casinos. Penn Entertainment changed its brand partnership from Barstool to ESPN in August. Roundhill Sports Betting & iGaming ETF, or BETZ, is an ETF that tracks the industry. It is a relatively small fund, with assets of just over $100 millions, but it gives investors exposure to sports betting companies in overseas markets. This includes FanDuel parent Flutter Entertainment. BETZ shares are up over 20% this year. Michael Bloom, CNBC’s reporter, contributed to this report.