It’s been steady as she goes for the overall market, albeit with a big-cap tint. Flutter Entertainment Plc (FLUT) is one of the fresher names we own, writes Mike Cintolo, editor of Cabot Growth Investor.
The action in leading growth stocks is mostly good, including some fresher breakouts that look promising. That said, we’ve also started to see a couple of wobbles out there. It’s something to watch, though again, most of the action is strong, so we’re not panicking over it.
Probably the biggest reason to worry is that very few are worried. We’re not huge on short-term sentiment measures, as they can be notoriously imprecise (sometimes weeks early). But it’s not hard to see that there’s a lot of euphoria out there on an intermediate-term basis, which could easily lead to a rug pull in general or a rotation (possibly out of hot names and into other areas).
Flutter Entertainment Plc (FLUT)
Thus, we wouldn’t be putting the rent money in a bunch of stuff that’s sticking straight up in the air. But at day’s end, it’s a bull market and leading growth stocks are acting well, so we’re holding our strong performers while paring back if needed and aiming to buy some fresher names as opportunities arise.
As for FLUT, it only broke free from a consolidation a couple of weeks ago on earnings. As the leading player in US online sports betting (and a top online casino play, too), Flutter’s FanDuel offering is poised to get more than its fair share of the growth in North America. It’s a market that the company believes can grow four-fold from 2023 to 2030.
A pullback is certainly possible, especially as news of some potential competition appears. Robinhood Markets Inc. (HOOD) is considering entering the space. But the buyers are clearly in control here.
Recommended Action: Buy FLUT.
