Wall Street's top sports-betting stocks ahead of the Super Bowl

There will be more at stake than just winning the Vince Lombardi trophy as millions of fans cheer for their side during Sunday's Super Bowl. A record number of people will be betting on the game in the hopes of winning big.

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According to the American Gaming Association, it is the single sporting event that receives the most wagers in the country. An AGA study estimates that 50.4 million American people will bet on Super Bowl LVII this year, which features the Philadelphia Eagles vs. Kansas City Chiefs. This surpasses the previous record by 61% from 2022. According to the poll, the wagers are expected to exceed $16 billion, more than double the estimate from the previous year.

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The big game is also being played in a state where sports betting is permitted for the first time in history. As a result, spectators at State Farm Stadium in Glendale, Arizona, may bet using their smartphones. Missouri, the home state of the Chiefs, has not allowed sports betting, unlike Pennsylvania, the homeland of the Eagles. To place a bet, Missouri gamblers must go across state boundaries.

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According to Trade Algo, they also had a market valuation of at least $1 billion and were given a buy rating by at least 60% of the analysts who follow the companies. According to Trade Algo, the names also have a 10% or greater average price target upside and at least 8 analysts have provided forecasts for them.

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Of the listed casino firms, Caesars Entertainment has a 26.2% greater upside potential than the average analyst price target. A buy rating is given by 62% of analysts that follow the stock. Caesars Sportsbook, which was created as a result of the company's $4 billion purchase of William Hill in 2021, is a part of the Caesars gambling business.

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This year, Caesars stock has increased by around 27%.

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The next company, MGM Resorts, has a 23% price target increase above the average. Most analysts who follow the stock give it a buy rating—nearly 67%. Way of BetMGM, which it jointly owns with Entain, the gambling firm engages in online sports betting.

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MGM recently revealed that fourth-quarter earnings exceeded the forecasts. So far, shares have increased by more than 31%.

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Global sports technology business Sportradar, which has the highest potential upside of any stock at 26.8%, is one non-sportsbook name on the list. The Swiss company offers data and analytics to sports leagues and bookmakers, and among its investors is NBA star Michael Jordan.

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Along with the National Basketball Association and Major League Baseball, as well as the sports betting websites DraftKings and FanDuel, it has relationships with a number of sports leagues. The official sports betting data from the National Football League, however, is not solely owned by Sportradar. For NFL games, it substitutes open-sourced data. Therefore, any bookmaker with a connection to the NFL must employ Genius Sports, a rival that holds the NFL data rights.

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Sportradar also has agreements with significant broadcasters to give in-game data outside of the sports betting industry. Included in it is Fox Sports, which is airing the Super Bowl.

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Last but not least, VICI Properties was also chosen. The MGM Grand Las Vegas and Mandalay Bay buildings will now be fully owned by the real estate investment trust, which is the largest landowner on the Las Vegas Strip. This was disclosed in December. Caesars is another neighbor.

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The stock, which has increased by around 6% so far this year, still has an 11% upside to the consensus analyst price objective. Almost 74% of the analysts that follow VICI rank it as a buy.