Rush Street Stock: Online Gamer Poised To Add 200% In 2024

Up 200% in 2024, online casino and sports betting leader Rush Street Interactive (RSI) now is positioned to extend those gains. Rush Street stock has pulled back from new highs in recent weeks, but is searching for support at a key level.





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Founded in 2012, Chicago-based Rush Street operates online gaming platforms that offer a wide range of casino games and sports betting options. Rush Street focuses on markets in the U.S., Canada and Latin America. Its brands include BetRivers, PlaySugarHouse and RushBet. Rush Street was an early entrant in many regulated jurisdictions.

The company currently offers real-money mobile and online operations in 15 U.S. states: New Jersey, Pennsylvania, Indiana, Colorado, Illinois, Iowa, Michigan, Virginia, West Virginia, Arizona, New York, Louisiana, Maryland, Ohio and Delaware. It also operates in the regulated international markets of Colombia, Mexico, Peru and the Canadian province of Ontario.

Main competitors include DraftKings (DKNG) and FanDuel parent Flutter Entertainment (FLUT).

Third-Quarter Beat Sparks Rally

In October, Rush Street reported better-than-expected results for its third quarter. The company had adjusted earnings of 5 cents per share. That reversed from a loss of 3 cents per share in the year-ago period. That’s the company’s fourth straight profitable quarter, per IBD MarketSurge data. That profitability is set to continue over the next four quarters. Analysts project earnings ranging from 6 cents to 10 cents per share.

Meanwhile, revenue jumped 37% to $232.1 million, its highest level in the latest eight quarters. That accelerated from the previous quarter’s 34% revenue growth rate. It was also well above the company’s three-year sales growth rate of 22%.

“Our focus on innovation to attract and retain high-value players continues to drive significant growth and profitability,” Chief Executive Richard Schwartz said in the company’s earnings news release. “Our strategy has yielded broad based growth and success across all of our geographies and products. We’ve accelerated player growth for another consecutive quarter, acquired significantly more players with much greater marketing efficiency, all the while increasing our player values. This combination sets us up well for continued strong performance.”

Analysts expect Rush Street earnings to swing to a profit of 18 cents per share in 2024. They call for a 99% surge in 2025, according to FactSet estimates. Meanwhile, sales are expected to grow an average of 14% over the next four quarters.

Recently crossing the profitability threshold, the company shows a decent 81 out of a best-possible 99 Earnings Per Share Rating. This rating gauges a company’s quarterly and annual earnings growth performance, placing more emphasis on recent results — especially the past three years of annual earnings and the two most recent quarters.

Rush Street did not respond to a request for comment for this story.

Rush Street International Growth

In late July, Rush Street launched its RushBet online casino and sportsbook in Peru, expanding its Latin American growth strategy and solidifying its position as a market leader in the region. And Peru’s launch is just the latest volley in the company’s international expansion plans.

Rush Street hopes to launch in the Canadian province of Alberta toward the end of 2025. And entry into Brazil is a possibility down the road.

Big international growth is a key catalyst for Rush Street stock, with Latin American revenues nearly doubling in the latest quarter. Meanwhile, Latin American monthly active users soared 122% to 329,000 vs. the year-ago period.

“Latin America now accounts for 16% of our total revenue, demonstrating its continued importance to our long-term strategic objectives and our commitment to delivering tailored experiences that resonate with local players,” Schwartz said on the third-quarter earnings call. “Our marketing efforts continue to yield positive results, building on the strong foundation laid in previous quarters.”

Online Gaming Stock Pulls Back

Rush Street Interactive went public on Dec. 30, 2020, via a merger with special-purpose acquisition company dMY Technology Group.

After the merger with dMY Technology, Rush Street reached a peak in January 2021 at 26.55, but shares struggled over the next few years. They eventually bottomed out in April 2023 at 2.77.

Following a sharp recovery from those lows, Rush Street stock broke out past its latest buy point in mid-October, topping a 10.97 entry in a cup with handle, per IBD MarketSurge chart analysis. Shares traded as high as 14.92 on Dec. 4, a 52-week high.

Now, the stock is pulling back to its 10-week moving average line following losses in recent weeks.

Bullishly, the relative strength line hit a new high in late November and continues to hold just off those highs. That’s an important technical indicator to watch. It indicates Rush Street stock is vastly outperforming the broad market. The RS line measures a stock’s price performance vs. the S&P 500. Its RS Rating is 97.

Finally, the IBD Stock Checkup says that Rush Street has a 94 out of a best-possible 99 IBD Composite Rating. The rating is designed to help identify top growth stocks, and indicates the online gaming stock is a market leader to watch.

Follow Scott Lehtonen on X at @IBD_SLehtonen for top stocks to watch and the Dow Jones Industrial Average action.

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