10 Best Sin Stocks to Buy Now

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6. DraftKings Inc. (NASDAQ:DKNG)

Stock Upside Potential: 38.90%

Number of Hedge Fund Holders: 61

DraftKings Inc. (NASDAQ:DKNG) is one of the best sin stocks to buy now. On May 20, UBS reiterated a Buy rating on DraftKings Inc. (NASDAQ:DKNG) and a $43 price target. The bullish stance comes on the heels of the company announcing plans to combine its online sports betting revenue with sports prediction market revenue.

The changes come as the company expects the prediction market to have negative revenue in 2026, similar to the early days of online sports betting. However, it expects significant improvement with real prediction market revenue coming in 2027. In a bid to expand its presence in the prediction market, the company plans to spend $200 million to $300 million in 2026 on customer acquisition.

Customer acquisition costs are expected to be significantly lower for prediction markets. DraftKings could acquire customers for $200-$300 each and add up to 2 million players. As DraftKings continues to scale, grow revenue, expand profitability, and invest in high-return opportunities, it expects full-year revenue to range from $6.5 billion to $6.9 billion and adjusted EBITDA to range from $700 million to $900 million.

DraftKings Inc. (NASDAQ:DKNG) is a digital sports entertainment and gaming company that operates online and retail sports betting, daily fantasy sports (DFS) contests, online casinos (iGaming), and digital lottery ticket services. It also runs a prediction markets app and produces sports media content.

While we acknowledge the potential of DKNG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DKNG and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 Best Sin Stocks to Buy Now.

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