Shares of Ladbrokes Coral Group plc (LDCOY - Free Report) have outperformed the industry it belongs to in the past three months. The stock has gained 8.5% as compared to the industry’s gain of 2.3%. Moreover, a northward movement in the yearly earnings estimates makes the stock a lucrative pick for investors. Over the past three months, estimates have increased 6.7% for the current year.
Driven by a slew of positives, the prospects for this Zacks Rank #2 (Buy) company make analysts optimistic about the stock.
What Makes Ladbrokes Coral a Significant Pick?
Estimated Earnings and Revenue Growth: Arguably, earnings growth is of utmost importance for judging a stock’s potential as surging profit levels are often indicative of strong prospects (and stock price gains) for the company in question.For 2017, Ladbrokes Coral’s earnings per share are expected to grow 77.8%, significantly higher than the industry average of 17.8%.
Moreover, year-over-year sales growth for the current year is expected at 55.1%.
VGM Score:Ladbrokes Coral has a VGM Score of A. Our VGM Score identifies stocks that have the most attractive value, growth and momentum characteristics. In fact, our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 make solid investment choices.
Ladbrokes Coral Merge: On Nov 2, 2016, Ladbrokes acquired the Coral Group and changed its name from Ladbrokes plc to Ladbrokes Coral Group plc. Notably, the merger with Coral has allowed the company to be the largest in betting and gaming industry, providing customers with an unrivalled choice of products. The merger has also led to a dividend increase and is expected to boost the company’s performance as well.
Industry Backdrop: Being a popular gambling company, Ladbrokes Coral is dependent on the global games market scenario. The recent European soccer league has been a busy period for the company. According to the Global Games Market Report by Newzoo, the overall growth rate in the gaming industry is significantly improving. In 2017, 2.2 billion gamers across the globe are expected to generate $108.9 billion, reflecting 7.8% year-over-year growth. The overall industry performance is encouraging for Ladbrokes Coral Group as well as for its peerslikeChurchill Downs, Incorporated (CHDN - Free Report) , Caesars Entertainment Corporation (CZR - Free Report) and Zynga Inc. — all carrying a ZacksRank #2. You can see the complete list of today’s Zacks #1Rank stocks here.
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