theScore (TSX:SCR) Stock Looks More Attractive Than Bitcoin or Tesla

Score Media and Gaming (TSX:SCR) or theScore has been one of the hottest TSX stocks in recent months. The company has a unique opportunity at hand, with its front-row seat to the Canadian single-game sports betting market.

Investors have been piling into shares of theScore on news that Canada is to give the green light on sports betting. The Canadian sports betting market is big. It could be worth as much as US$5.4 billion, according to the folks at theScore.

There are many reasons to believe that the market could be even larger, as Canadian gamblers could be stuck at home for many more months, if not years to come, due to COVID-19. While the pandemic will end, many experts agree that COVID-19 isn’t going to be eradicated anytime soon, even if the vaccine rollout goes smoother than planned.

In any case, the hidden gem that is theScore may soon gain the attention of our investor friends south of the border. The company is planning a public listing on the NASDAQ Exchange, and could be a big one amid the increased appetite for explosive growth stocks.

Start nibbling into a position

In numerous prior pieces, I urged investors to give theScore a good look. I’ve been a fan of theScore app for tracking my favourite sports teams. The sports-tracking app’s intuitive interface is among the best on the Apple App Store. And with theScore Bet ready to take the sports-betting scene by storm, I’d look to accumulate shares now, as weak-handed investors throw in the towel because I think theScore stock’s epic climb is not close to being over.

It’s expensive, but it may not be overvalued

Shares were ridiculously expensive at over 100 times sales (that’s sales, not earnings!) at its peak levels. Although the recent 30% pullback makes the stock 30% cheaper, it’s still insanely expensive according to traditional valuation metrics such as the price-to-sales (P/S) ratio. Today, SCR stock trades at 81.6 times sales, making it still one of the priciest stocks you’ll come across in today’s frothy stock market.

Still, there’s a case for putting the name on your speculative buy list on this latest dip. The stock isn’t without its fair share of risks, but I am confident in management’s ability to build a moat around its share of the emerging sports-betting scene. Of course, the stock could easily get in half another several times and still be deemed pricey by most traditional value investors.

Thus far, only one sell-side analyst (or at least the only analyst I can find out there) has coverage on theScore stock. Matthew Lee of Canaccord Genuity recently slapped a $60 price target on the stock, implying over 56% worth of upside from current levels.

theScore stock looks better than Bitcoin or Tesla

Of all the speculative plays out there, theScore is my favourite. While you could still lose a big chunk of your money over the near-term, as this growth-to-value rotation accelerates as a result of climbing bond yields, I still prefer the small-cap growth stock over the likes of cryptocurrencies like Bitcoin or even Tesla.

Both Bitcoin and Tesla strike me as prominent bubbles. I can’t say the same for theScore stock. If you’ve got cash to gamble or invest to the extremely long-term, SCR shares, I believe, are worth betting on at $37 and change, as the odds may be tilted ever so slightly in favour of the investor ahead of its U.S. listing.

Speaking of ample upside, you need to check out these following stock(s) curated by the team here at the Motley Fool Canada!

The 10 Best Stocks to Buy This Month

Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.
Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.

Click Here to Learn More Today!

More reading

  • 3 Hidden Gems to Add to Your Portfolio
  • 2 Top Growth Stocks to Buy After Monday’s Tech Wreck
  • Hotter Than Bitcoin: These 2 TSX Momentum Stocks Are up Over 1,500% Since March — Don’t Chase Them
  • Next DraftKings? Here’s Why This Fast-Growing TSX Stock Is a Buy
  • 2 Top Growth Stocks I Bet Will Massively Outperform the TSX in 2021

Fool contributor Joey Frenette has no position in any of the stocks mentioned. David Gardner owns shares of Tesla. Tom Gardner owns shares of Tesla. The Motley Fool owns shares of and recommends Tesla.

The post theScore (TSX:SCR) Stock Looks More Attractive Than Bitcoin or Tesla appeared first on The Motley Fool Canada.

Trade the News!

Seize the market opportunities!
Start trading with a reliable broker.
Let an expert help you get started!

The Motley Fool Canada


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *