Stars Group (TSX:TSGI)(NASDAQ:TSG) stock was up 1.08% in late morning trading on March 26. Shares have jumped 9.9% over the past month.
Stars Group stock has hovered around 52-week lows since early February. Shares are trading well off the all-time highs it set in the early summer of 2018.
The company generated considerable buzz after the U.S. Supreme Court struck down a federal ban on sports betting. Stars Group has already moved to consolidate its online empire in select states.
Stars Group reported a strong fourth-quarter and full-year for 2018. Net cash inflows from operating activities climbed to $559 million compared to $494 million in the prior year. Revenue growth in 2018 was primarily driven by growth in the international segment, as the company’s acquisition of Sky Betting & Gaming and BetEasy drove results in Q4 2018.
Stars Group is projecting a big jump in revenue in 2019, from $2 billion in 2018 to between $2.64 billion and $2.76 billion this fiscal year. The company projects adjusted EBITDA between $960 million and $1.01 billion, a big jump from the $780 million posted in 2018.
Stars Group released these projections factoring in potential foreign currency headwinds.
The potential of legal sports betting in the United States is not close to being fully unleashed, as many stats have yet to move forward on full legalization. Stars Group is still trading at the low end of its 52-week range.
Shares have climbed to an RSI of 62, which puts it outside of overbought territory in late March. Even still, I like Stars Group as a terrific buy-and-hold right now.
