It’s ironic that the biggest game of the year has become less and less about the game.
Super Bowl Sunday is one of the biggest party days of the year. Some folks are interested in the game; others just want the snacks.
Then there are the commercials, with everyone on the planet offering their opinion on which was the best. With more than 200 million people expected to watch this Sunday, no wonder advertisers pay $7 million for 30 seconds of air time.
This year, you may be more interested in catching a glimpse of Taylor Swift… or catching a glimpse of someone else catching a glimpse of Taylor Swift.
Or maybe you’re planning to make a wager, now that sports betting is legal in three out of every four states. The number of Americans planning to bet on the Super Bowl this year is up 35% to nearly 68 million, according to a recent survey from the American Gaming Association.
Don’t want to bet on the game? That’s fine. You can bet on almost anything else you want. Like…
- What color will the Gatorade bath be?
- How long will Reba McEntire’s Star-Spangled Banner rendition last?
- What will the temperature be at kick-off?
- And even whether Travis Kelce will propose to Taylor after the game.
I certainly wouldn’t consider myself a Swiftie. And longtime readers know that I’m not a huge sports fan, either. (Except for hockey.)
So, when it comes to picking a Super Bowl winner – or how many broadcast appearances Taylor will have – I need help.
I’ve had great success picking winning stocks by relying on “predictive analytics” – which starts with massive amounts of data and uses a systematized analysis to get down to the few moneymaking numbers that matter.
Why not use that same approach to make a wager on who will win this year’s Super Bowl? And if I could have the same probability of success as my quantum stock-picking system – I can count on it being right 70% of the time – then I might be on to something.
And why not incorporate the latest-and-greatest analytical technology – artificial intelligence?
A.I. technology lets us analyze more data more precisely and faster than ever before. That’s why the whole world is turning to it – and why the massive A.I. boom has already created trillions of dollars in new investor wealth.
I went right to the source that “kicked off” the whole A.I. craze – ChatGPT. Surely this tech marvel has the mountains of data and the lightning-fast algorithms to analyze the teams, the players, the coaches, the stadiums, and all the variables that will spotlight the likely winner. (Okay, maybe not a marriage proposal.)
“Who will win the Super Bowl?” I asked it.
As an AI, I cannot predict the future, including the outcome of specific events like the Super Bowl. The winner of the Super Bowl depends on various factors including the performance of the teams, player injuries, coaching strategies, and many other variables. It’s best to watch the game to find out which team emerges victorious.
So much for that idea. You can’t bet on a game – or anything else – after the fact.
Fortunately, I’m happy to say, my Quantum Edge system doesn’t give me the same “non-answer” when I check the stock rankings every morning.
Oh well. Sports betting isn’t my thing anyway. But it is for a lot of folks.
With the biggest sports betting event just days away, what are the odds that betting on betting will make you money?
Let’s run one of the biggest winners through our Quantum Edge system to find out…
The 145% Gainer
When analyzing sports betting stocks, you have to start with the one that has left everyone else in the dust.
DraftKings (DKNG) shares have shot up over 145% in the last 12 months – now trading $40 after bumping along at less than $20 for most of 2022.
DKNG, which features celebrities including Kevin Hart in its commercials, took over the top spot from FanDuel with a 33% share of online sports betting. And its revenue grew 57% year over year.
The sports betting giant has nice momentum right now. But that’s not the only factor in handicapping the odds of continued gains. The real test is what my Quantum Edge system reveals about the stock’s most predictive factors – fundamentals, technicals (of which momentum is a part), and whether Big Money is interested or not.
And on that score, DKNG falls a tad short.
Source: TradeSmith Finance and MAPsignals.com
That overall Quantum Score of 63.8 isn’t bad at all. It’s a bit shy of the optimum buy-zone threshold (about 70). But on its own, it’s not enough to scare me away from the stock.
And DKNG’s Technical Score of 88.2 is downright excellent. Given the stock’s big run, that strong technical number isn’t surprising at all.
It’s the fundamental ranking that gives me pause. The Fundamental Score of 29.2 is concerningly low – and tells me the company’s financial muscle isn’t yet strong enough to give me confidence the stock will continue its run.
Sales growth is good, which is the reason for the current momentum. But bottom-line profitability has yet to follow that top-line growth. DraftKings’ losses have narrowed – but the company isn’t projected to achieve full-year profitability until 2025 at the earliest. And a lot can happen in a year.
DraftKings’ debt level is also a red flag – especially since that burden is magnified when interest rates are high. The company’s debt/equity ratio is 1.67, meaning the company is borrowing $1.67 for every $1 of equity.
But whether you’re talking sports betting or stocks, one thing is key: You need to have the odds heavily on your side. It’s hard to get that “edge” when you’re making a wager. The sportsbooks are pretty good at knowing exactly where to set the odds so they make money.
That’s why the “house always wins.”
But here, with DraftKings, the odds of making good money are lower than other stocks you can invest in right now.
The Smarter Bet
To put the odds firmly in your favor when investing in stocks, these three keys have the most predictive value:
- Fundamental strength: The best businesses with strong sales and earnings growth are the ones most likely to make you money.
- Technical strength: If Newton created an investing physics law, it would be something like, “Stock prices in motion tend to stay in motion.” New highs almost always lead to more new highs.
- Big Money interest: Institutional trading makes up between 70% and 90% of all daily volume. When Big Money is flowing into a stock, it can’t help but move higher.
Stocks that hit all three of these marks – the investing trifecta – can elevate your odds of making money up to 70%, according to decades of use and back testing my Quantum Edge system.
I especially like to buy the absolute strongest stocks in the sector Big Money is focusing on. And so far in 2024, technology leads the way. It’s where you find growth and innovation, and that’s not going to change for a long time.
And within technology, A.I. remains a hot spot. The megacompanies like Microsoft (MSFT) and Google (GOOGL) are steaming full speed ahead with A.I., but they’re each already valued at around $2 to $3 trillion.
My favorite investments are smaller, lesser-known companies that fly under the radar but are in the hottest industries in the hottest sectors – like A.I. They check all the boxes for stocks that are poised to move higher.
In fact, we just booked 149% profits on part of our position in a lesser-known A.I. leader in my Quantum Edge Pro service… in just five months.
Oh, and if you want to place a bet on the next Super Bowl winner, the 49ers are the favorite. But maybe Taylor Swift will give the Chiefs a little luck.
Or maybe she won’t and they’ll have to “shake it off.” (Sorry.)
Either way, it’s just another reason stocks – the best stocks analyzed the right way – remain a much better “bet.”
Talk soon,
Jason Bodner
Editor, Jason Bodner’s Power Trends
