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Investing in the World's Fastest Growing Sport

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Video games have evolved significantly over the last thirty years. As the games have changed, new arenas have, quite literally, been opened. Players competing around the globe suddenly had leaderboards which stretched across continents. Thus began the dawn of a new era. The dawn of the Esports athlete. Tournaments with big prize money and sponsored teams began to pop up all over the globe. It didn’t matter if you could dribble a basketball or throw a 90-mph fastball. You don’t have to be the tallest or the strongest in the world of Esports. You need acute senses, deft accuracy, and impeccable strategy. Suddenly, anyone could become a legend.

Ultimate in Spectator Sports 

These video games are not just for kids anymore. An entire generation of adults was raised on video games, myself included. The numbers are staggering. It’s estimated that 2.5 billion people around the globe play video games, including 2 out of every 3 Americans. The games themselves grow in popularity each year. The Steam platform alone has grown from 8 million concurrent daily users in early 2015 to nearly 17 million to start 2019. Today, there are an estimated 454 million Esports views worldwide. That number is estimated to grown to 645 million by 2022. That means that more people watch video games than Netflix, Hulu, HBO and ESPN…COMBINED.

Speaking of ESPN, the popular sports network and website provides Esports coverage. League of Legends is very prevalent on the site. The giant of Esports viewership, LoL is truly in a league of its own. The 2018 LoL World Finals had nearly 100 million viewers. To give you some perspective, the NFL’s Super Bowl LII had 103.4 million viewers. That means there’s a good chance this year’s LoL World Finals will have more viewers than the Super Bowl. An astounding metric.

Projected Growth of Esports

It’s not going to end any time soon. We are seeing the very beginning of the Esports craze. While the games themselves may change over time, the underlying trend will not let up. Gaming is the fastest-growing form of entertainment in the world. Revenues have been increasing globally at a clip of 9.7% per year. Last year, video game revenues totaled $139 billion. By 2022, the global video game market is estimated to be nearly $200 billion.

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Most Investors Overlook This Shocking Growth

It’s hard to exaggerate the present boom and future potential of Esports and the video gaming industry. Much like with Netflix and Facebook in their emerging stages, fortunes could be made on innovative companies by those who get in early.

Zacks has just released a Special Report that pinpoints 5 powerful stocks to add to your portfolio. All are sound investments that have potential to skyrocket as the industry continues to accelerate.

See these 5 stocks right now >>

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How to Get Invested

There are two easy plays to get invested in Esports phenomenon. The first is by investing in the companies which develop the games themselves. New games are being created all the time. Who knows what the next gaming sensation will be? These video game developers make money off sales of the games they develop. In some cases, like in League of Legends and Dota, the games themselves are free to play. Anyone with a computer can log on and try their hand at these gaming crazes.

The next easy way to invest is through hardware. There are several manufacturers out there in the semiconductor industry making hardware specifically tailored for the demands of gaming. These companies make the graphics cards which PCs need in order to run these games. You also have companies which manufacture gamer-targeted peripherals like keyboards, monitors, headphones, controllers and mice.

Even within these two investment choices, you can gain exposure to different markets. There are companies out there which develop games exclusively for the Indian market or the Chinese. It’s a great way to get some emerging market exposure while still investing in a developed, mature industry.

Stacking the Odds

Jumping into every stock that has exposure to Esports is not the way to play this new trend. Stick to the basics, looking for stocks with strong earnings trends which are in this growing field. That way, you stack the odds in your favor, with solid companies that have strong growth projections and a sturdy foundation. The easiest way to find these stocks is by leaning on the time-tested strength of the Zacks Rank. Stocks with favorable Zacks Ranks have the strongest earnings trends. At Zacks, we can help uncover the next big thing before the rest of the market finds it. 

Investing in the Next Big Things 

There are many stocks to tap the Esports phenomenon, but I have narrowed the list to 5 special companies that are solid investments now and have extreme growth potential in months and years to come.

Today you are invited to download our just-released Investor’s Guide to Esports, 5 Stocks for Major League Profit Plays.

This space offers the best of all possibilities: It’s booming and yet still emerging. The earlier you get in the greater your potential for serious gains. 

Our Special Report guides you through this opportunity and provides stocks to take full advantage of it:

•  Computer hardware giant with a new generation of products

•  Manufacturer of peripherals for gamers with features that stand out above competitors

•  Parent company of one of the world’s most downloaded games

•  Game developer on the cusp of what looks to be a monster turnaround

•  Foreign internet tech company with an almost limitless upside

Important Note:

We want to limit the number of investors who get in on the early wave of buying for these 5 stocks so the deadline to download the Special Report is Sunday, September 15.

Click here to get your Zacks’ Investor’s Guide to Esports today >>

Good Investing,

David Bartosiak

Dave, a Zacks Stock Strategist, shares his expertise in detecting new trends and tracking momentum and earnings surprises. He invites you to check his new picks in Esports Investor’s Guide: 5 Stocks for Major League Profit Plays.

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