March 19, 2023
Unleash the Madness: 5 Stocks That Could Make You Rich During March Madness
Don’t miss out on the unique investment opportunities March Madness brings – explore these stocks and ETFs to potentially boost your portfolio during this exciting season!
- In 2022, Americans wagered $3.1 billion on the NCAA Division I Men’s Basketball Tournament, highlighting the significant economic impact of March Madness.
- The National Chicken Council reported a record consumption of 1.42 billion wings during the tournament in 2022, with companies like Wingstop seeing stock price increases.
- The global online sports betting industry is projected to grow to $153 billion by 2030, making ETFs like Roundhill Sports Betting & iGaming ETF (BETZ) an attractive investment option.
Few sports events capture the attention and imagination of Americans quite like March Madness. The NCAA Division I Men’s Basketball Tournament draws millions of fans annually, from die-hard alumni to office pool novices. Beyond the mayhem of buzzer-beaters lies a reality that is equally exciting — the connection between March Madness and the stock market.
On the surface, basketball and stocks may seem disconnected, but when we dive into it — we find that they are inextricably linked. In 2022, 45 million Americans bet $3.1 billion on the tournament, with 37 million betting on brackets. Beyond the surge in sports betting, March Madness brings an increase in demand for pizza, alcohol, wings, and more — all of which have real-world implications for stocks.
Consider the case of Wingstop (WING). In 2022, the National Chicken Council (NCC) reported a record 1.42 billion wings would be consumed by Americans during the tournament. Wingstop, a major beneficiary, saw its stock price increase significantly during March Madness. Several firms raised their price targets on WING, signaling strong growth potential.
March Madness creates a unique environment that leads to increased consumer spending and brand visibility which directly props the stock prices of companies directly or indirectly involved in the tournament. This effect extends beyond just food and beverages and involves other popular industries like entertainment, sports betting, and technology.
The global online sports betting industry, for instance, is expected to grow to $153 billion by 2030. In anticipation of this growth, ETFs such as Roundhill Sports Betting & iGaming ETF (BETZ) and iBET Sports Betting and Gaming ETF (IBET) offer investors exposure to a variety of popular gambling stocks. These funds traditionally see good returns during March Madness.
March Madness is more than just a college basketball tournament — it’s a cultural and economic force that reshapes the stock market in a number of different ways. As the tournament continues to capture the hearts and wallets of millions, savvy investors should pay close attention to the following 5 stocks which stand to benefit the most from March Madness.
Roundhill Sports Betting & iGaming ETF (BETZ) – $15.50
This ETF offers investors a unique opportunity to invest in several popular sports betting and online gaming stocks. In fact, BETZ offers exposure to 41 different stocks, including DraftKings, Churchill Downs, MGM Resorts, and Boyd Gaming. BETZ also boasts an expense ratio of only 0.75%, providing plenty of incentive for investors.
iBET Sports Betting and Gaming ETF (IBET) – $9.68
Another iGaming ETF to consider is IBET which includes popular brands like Penn National Gaming, FanDuel, and Caesars. At an expense ratio of 0.79%, it offers investors access to 33 leading gambling stocks. With many analysts expecting the online sports betting and gaming market to approach $153 billion by 2030, IBET could prove to be a long-term investment — even if it has immediate yield during March Madness.
DraftKings (DKNG) – $18.24
DraftKings saw temporary gains in both 2021 and 2022 during March Madness. Argus analysts upgraded DraftKings from Hold to Buy with a $22 price target, with revenues expected to surge from $323 million in 2019 to $3.1 billion in 2023 as more states legalize online sports betting.
Coca-Cola (KO) – $60.44
As a major sponsor of March Madness, Coca-Cola is another stock that could see positive movement during the tournament. Beyond the draw from March Madness, Coca-Cola recently increased its quarterly dividend from 44 to 46 cents per common share which is a positive signal for investors.
Wingstop (WING) – $169.60
We talked about Wingstop earlier, but it’s also worth noting again as a potential stock winner during March Madness. In addition to the massive boost of consumer spending on wings during March Madness, WING has had its price targets raised recently from multiple firms, which is a growth signal.
As the 2023 NCAA Men’s Basketball Tournament continues to generate billions in revenue, it’s driving significant returns to savvy investors who can anticipate the direct and indirect effects of the tournament on areas within the economy. Brands like DraftKings, Caesars Entertainment, Coca-Cola, AT&T, and Capital One Financial Corporation are all potential stock winners during March Madness and are worth you considering as an investment opportunity.
Disclaimer: The information provided in this article is for educational and informational purposes only and should not be construed as professional financial advice. The author and publisher are not engaged in rendering financial or investment advice, and the content of this article should not be considered a recommendation to buy, sell, or hold any particular security or investment. Readers should consult with a qualified financial or investment professional before making any decisions based on the information presented in this article. The author and publisher expressly disclaim any liability or responsibility for any losses or damages resulting, directly or indirectly, from the use or application of any of the contents of this article.