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The start of the 2021 National Collegiate Athletic Association (NCAA) Division I Men's Basketball Tournament has spread “March Madness” and millions of Americans are seeking to capitalize on this opportunity by enthusiastically filling in the brackets.
Though the championship will divert a large number of Americans from the stock market and dried up trading volumes, it will lead to a buying frenzy and strong stock gains. Being the biggest modern sporting event in the United States, the tournament is a money-spinner for sports betting companies, media networks (TV and digital) and advertisers, attracting billions of revenues in just three weeks.
Increased legalization of online sports betting and the cancellation of the tournament last year due to COVID-19 are expected to make this year’s March Madness the most wagered-on sporting event in history. Notably, online gambling is now legal in 25 states and a large number of Americans are filled with excitement.
According to the American Gaming Association, more than 47 million people will place bets on this year’s tournament with a dramatic rise in land-based and online sportsbooks betting. More than eight million bettors plan to make wagers at land-based sportsbooks, up 79% from 2019. Another 17.8 million plan to place bets online, up 206% from 5.8 million in 2019. Wagers are expected to break the 2019 record of $8.5 billion. The tournament is expected to generate as much as $2 billion in legal bets, per the H2 Gambling Capital estimates.
Additionally, sponsors invest millions in advertising and marketing the March Madness phenomenon. Currently, there are 18 official March Madness sponsors with Aflac, Invesco and Great Clips being debuted this year. These companies are also expected to gain traction from the competition.
The TV media companies are expecting their most lucrative year with CBS Corp. and Turner Sports continuing to score maximum revenues from the event by broadcasting through four networks, CBS, TNT, TBS and truTV. The two companies, which jointly broadcast the tournament each year, are expected to rake in more than $1 billion in advertisement for the NCAA men’s basketball tournament. More than 80% of the advertisers will also have a digital presence this year. CBS and Turner have lined up more than 100 advertisers combined, with 90% of last year's planned marketers returning this year.
Stocks to Bet on
As the contest is a top-seeded revenue driver for sports betting, sponsors, media and networking players, investors can easily basket some gains by jumping into the stocks in these spaces. Any of these stocks mentioned below could make for an exciting March Madness game.
It is a leading, multi-jurisdictional owner and manager of gaming and racing facilities with video gaming terminal operations, and a focus on slot machine entertainment. The company operates live sports betting properties in Colorado, Illinois, Indiana, Iowa, Michigan, Mississippi, Nevada, Pennsylvania, and West Virginia; Barstool Sports, an online sports betting app in Pennsylvania; and online social casino, bingo, and online casinos under the iGaming name in Pennsylvania and Michigan. The stock has a Zacks Rank #3 and VGM Score of B. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
ViacomCBS
This is the leading global media and entertainment company that emerged from the combination of the erstwhile Viacom and CBS Corporation on Dec 4, 2019. The company airs most of the tournament’s 67 nationally televised games, including the most-watched ones. It has a Zacks Rank #3 and VGM Score of B.
This beverage company manufactures, markets and sells various nonalcoholic beverages worldwide. CocaCola is one of the leading three sponsors of NCAA March Madness. It is not only an official NCAA ‘Corporate Champion’ partner but also owns Powerade, the official sports drink of March Madness. The stock has a Zacks Rank #3 and VGM Score of B.
AT&T is the second-largest wireless service provider in North America and one of the world’s leading communications service carriers. Turner Sports, which has rights to March Madness games along with CBS, is the segment of AT&T. The stock has a Zacks Rank #3 and VGM Score of B.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021? Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
4 Stocks to Make the Most of March Madness
The start of the 2021 National Collegiate Athletic Association (NCAA) Division I Men's Basketball Tournament has spread “March Madness” and millions of Americans are seeking to capitalize on this opportunity by enthusiastically filling in the brackets.
Though the championship will divert a large number of Americans from the stock market and dried up trading volumes, it will lead to a buying frenzy and strong stock gains. Being the biggest modern sporting event in the United States, the tournament is a money-spinner for sports betting companies, media networks (TV and digital) and advertisers, attracting billions of revenues in just three weeks.
Increased legalization of online sports betting and the cancellation of the tournament last year due to COVID-19 are expected to make this year’s March Madness the most wagered-on sporting event in history. Notably, online gambling is now legal in 25 states and a large number of Americans are filled with excitement.
According to the American Gaming Association, more than 47 million people will place bets on this year’s tournament with a dramatic rise in land-based and online sportsbooks betting. More than eight million bettors plan to make wagers at land-based sportsbooks, up 79% from 2019. Another 17.8 million plan to place bets online, up 206% from 5.8 million in 2019. Wagers are expected to break the 2019 record of $8.5 billion. The tournament is expected to generate as much as $2 billion in legal bets, per the H2 Gambling Capital estimates.
Additionally, sponsors invest millions in advertising and marketing the March Madness phenomenon. Currently, there are 18 official March Madness sponsors with Aflac, Invesco and Great Clips being debuted this year. These companies are also expected to gain traction from the competition.
The TV media companies are expecting their most lucrative year with CBS Corp. and Turner Sports continuing to score maximum revenues from the event by broadcasting through four networks, CBS, TNT, TBS and truTV. The two companies, which jointly broadcast the tournament each year, are expected to rake in more than $1 billion in advertisement for the NCAA men’s basketball tournament. More than 80% of the advertisers will also have a digital presence this year. CBS and Turner have lined up more than 100 advertisers combined, with 90% of last year's planned marketers returning this year.
Stocks to Bet on
As the contest is a top-seeded revenue driver for sports betting, sponsors, media and networking players, investors can easily basket some gains by jumping into the stocks in these spaces. Any of these stocks mentioned below could make for an exciting March Madness game.
Penn National Gaming Inc. (PENN - Free Report)
It is a leading, multi-jurisdictional owner and manager of gaming and racing facilities with video gaming terminal operations, and a focus on slot machine entertainment. The company operates live sports betting properties in Colorado, Illinois, Indiana, Iowa, Michigan, Mississippi, Nevada, Pennsylvania, and West Virginia; Barstool Sports, an online sports betting app in Pennsylvania; and online social casino, bingo, and online casinos under the iGaming name in Pennsylvania and Michigan. The stock has a Zacks Rank #3 and VGM Score of B. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
ViacomCBS
This is the leading global media and entertainment company that emerged from the combination of the erstwhile Viacom and CBS Corporation on Dec 4, 2019. The company airs most of the tournament’s 67 nationally televised games, including the most-watched ones. It has a Zacks Rank #3 and VGM Score of B.
CocaCola Company The (KO - Free Report)
This beverage company manufactures, markets and sells various nonalcoholic beverages worldwide. CocaCola is one of the leading three sponsors of NCAA March Madness. It is not only an official NCAA ‘Corporate Champion’ partner but also owns Powerade, the official sports drink of March Madness. The stock has a Zacks Rank #3 and VGM Score of B.
AT&T Inc. (T - Free Report)
AT&T is the second-largest wireless service provider in North America and one of the world’s leading communications service carriers. Turner Sports, which has rights to March Madness games along with CBS, is the segment of AT&T. The stock has a Zacks Rank #3 and VGM Score of B.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021? Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
AccessZacks Top 10 Stocks for2021 today >>