Stocks have started off 2026 with a bout of volatility. While volatility can be scary for many investors, it can also present excellent opportunities. That’s especially true for growth stocks, which tend to exhibit larger price swings than the average security. While many growth stocks have already moved higher following a significant sell-off in the first quarter, there still remain plenty of opportunities for investors, even if you only have about $100 to invest.
After dropping 50% so far this year, Flutter Entertainment (FLUT 0.52%) looks like an absolute no-brainer buy right now.
Betting on this growth stock
Flutter is the company behind the popular sports betting brand FanDuel and holds a portfolio of other sports betting brands worldwide. In addition to its leading position in the United States, it holds a leading market share in the U.K., Ireland, Australia, and Italy.
Management has strategically grown the business through acquisitions. It leverages its massive scale, which gives it a data advantage, and its leading technology to take existing brands and make them market leaders. That’s exactly what it did with FanDuel in the U.S.
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Investors have soured on the company over the last six months or so, fueled by fears that its U.S. business is losing ground. The rise of prediction markets presents a threat to sportsbooks like FanDuel. Flutter responded by introducing its own prediction market to compete with sites like Kalshi and Polymarket. Many investors saw FanDuel’s slowing U.S. sportsbook handle growth last year (up 3%) as a sign that prediction markets are cutting into the business. Furthermore, concerns about how sports betting is taxed under the new U.S. tax code could shift more gambling to the more tax-favored prediction markets.
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But if Flutter wanted to drive a larger handle, it could leverage its data and pricing tools to provide more promotions to bettors, driving them to use its sportsbook more. Of course, that would come at the cost of net revenue margin, which notably expanded 220 basis points in the U.S. last year, resulting in 33% revenue growth. Finding a balance between promotions and margin expansion will be key for the business’ growth going forward.
Meanwhile, the international business continues to show steady growth, despite some regulatory changes in key markets, such as India and the U.K. Management aims to reduce costs by $300 million by 2027 by moving more of its portfolio to its core platform. Doing so should also improve its pricing, which can increase handle and reduce variance.
Despite the challenges facing Flutter, its scale, technology lead, and portfolio of strong brands ensure that it can maintain its position in the fast-growing online sports betting and i-gaming market. What makes the stock a no-brainer at around $100 per share is that its enterprise value of $28 billion is just 9.5 times management’s EBITDA outlook for 2026. That’s an absolute bargain of a price for a company worth betting on right now.
