One of my best shares to buy right now is Flutter Entertainment (LSE:FLTR). I believe the best shares to buy are those companies that are turning over a profit, growing their market share, and perhaps overlooked. In terms of price, certain shares aren’t always the cheapest but that doesn’t always put me off as I am more concerned with performance.
Created by the merger of Betfair and Paddy Power, FLTR is a gambling and gaming giant. With hundreds of retail outlets, Flutter also has a strong online presence through its multiple brands. As well as Paddy Power and Betfair, its brands include Pokerstars, Sky Betting and Gaming, Oddschecker and many more throughout its international markets.
One of the best shares to buy right now
The gaming industry has seen growth during the recent economic downturn in which many other industries have suffered. FLTR lost approximately 36% when the market crashed. At its lowest point in mid-March, shares could be picked up for 5421p per share. As I write, shares would cost 13,660p. That is a mammoth 151% increase. For 2021, FLTR trades on a hefty price-to-earnings ratio of close to 30. Despite that meaty valuation, I do believe the gambling powerhouse is worth it.
FLTR is a global business with significant scale. Through acquisitions and carefully planned strategy it positions itself to take advantage of many opportunities. This is especially the case in key markets such as Australia where its Q3 results showed significant growth. Even though Covid-19 is still affecting the economy, I believe FLTR is well positioned to grow further and this is why I class it in my best shares to buy now category.
Yesterday FLTR confirmed Q3 results and it closed up nearly 5% on the FTSE 100 due to the positive news. It confirmed that results exceeded expectations as increased numbers of customers helped bolster the gambling giant. Group revenue increased by 30% to £1.3bn compared to the same period last year. Outside the US, EBITDA (earnings before interest, taxation, depreciation, and amortisation) for the year is expected to be in the region of £1.275 to 1.35bn. That’s a £25m increase on previous guidance.
A global pandemic saw restrictions on retail outlets. FLTR has hundreds of these but it also possesses a formidable online presence. In Q3 online revenue grew an impressive 33%, while average daily customers grew by 41% globally. The first lockdown saw competitive sport grind to a halt. But as it started up again in the summer, FLTR’s brands such as Paddy Power Betfair and Sky Betting and Gaming have flourished. These two brands recorded revenue growth of 32% and 26% respectively. I mentioned FLTR’s ability to excel in key markets. In Australia it recorded a growth of 76% in revenue alone with its BetEasy brand.
FLTR is not the cheapest share to purchase so here is another one of my top picks. Flutter has beaten off the economic downturn and continued to experience significant growth. I believe this upward trend of growth and significant gains in market share across the world will continue.
Jabran Khan has no position in any shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.