Are these stocks worth a bet in the market crash? Here’s what I think

first_imgAre these stocks worth a bet in the market crash? Here’s what I think Our 6 ‘Best Buys Now’ Shares “This Stock Could Be Like Buying Amazon in 1997” Simply click below to discover how you can take advantage of this. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Jabran Khan | Wednesday, 29th April, 2020 | More on: FLTR WMH center_img Enter Your Email Address Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Image source: Getty Images. During this market crash I have looked into William Hill (LSE:WMH) and Flutter Entertainment (LSE:FLTR).Market crash victimWilliam Hill is heavily reliant on its retail business, with over 1,500 shops across the UK. In fact, approximately 45% of William Hill’s revenue comes from its retail division. So it is fair to say that Covid-19 and the lockdown has been disastrous for William Hill. If you add to the closure of these shops the fact that sporting events have been cancelled around the world, things aren’t looking good right now in my opinion. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…William Hill has seen nearly 50% of its share price value wiped off in 2020 alone. In reaction to the market crash it decided to suspend its dividend and has taken advantage of the UK government’s furlough scheme. Its staff costings come close to £400m per annum. Naturally advertising expenditure will decrease with a lack of sporting events which could save it a bit of money.William Hill’s share price has doubled since its mid-March market crash low of close to 40p. It is also a global player with market share across Europe and ever increasingly into the US market. The US could be a key market as a Supreme Court ruling in 2018 legalised sports betting. In turn, many states have begun to legalise it individually in their jurisdictions. The online gaming market is still ever present even if sporting events aren’t taking place right now, meaning there is still potential to make money. So, there is short-term pain here but potential longer-term opportunity to thrive if you are not averse to some risk. Too risky or worth it?Created by the merger of Betfair and Paddy Power, Flutter Entertainment is a gambling and gaming giant in the UK. With hundreds of retail outlets, Flutter also has a strong online presence through its multiple brands. It is also in the process of a nearly $7bn merger with Canadian gambling company The Stars Group, which will further expand its reach. Listed on the FTSE 100 index, Flutter Entertainment lost nearly 25% of its share price value due to the market crash. It is worth noting that its share price is currently higher than pre-crash levels. FLTR does possess a high price-to-earnings ratio of close to 50, which suggests it may be overpriced. In response to current market conditions it cancelled its 2020 dividend but is still paying its 2019 final dividend. This amounts to £1.61 per share but is in the form of shares, not cash. FLTR also decided to furlough many of its staff around the world albeit without government help. The decision to furlough indicates to me it is in a strong position to be able to pay wages without government help.FLTR’s Q1 trading update in early April showed revenue was up 16% year on year to £547m, including a healthy rise in both sports betting and online gaming. Sports betting will be affected for the next quarter due to cancelled events. In my opinion there is a longer term opportunity here. With the merger still going ahead there is some light at the end of the tunnel. However, it must be noted that debt levels will rise after the merger and there is no offer of a dividend either. FLTR is one worth considering if the price reduces in the market crash. 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. See all posts by Jabran Khanlast_img read more

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