Take a Gamble on Rush Street Interactive Stock at New All-Time Highs

• Rush Street Interactive (RSI) is a leading online gaming and sports entertainment company with strong momentum in regulated U.S. and Latin American markets.
• RSI has surged 110% over the past year and just hit a new all-time high.
• Revenue and earnings are both projected to grow nicely this year and next year.
• Despite a high P/E ratio, disciplined stop-loss strategies may justify exposure given RSI’s consistent growth in revenue, earnings, and cash flow.

Today’s Featured Stock

Valued at $7.52 billion, Rush Street Interactive (RSI) is a trusted online gaming and sports entertainment company focused on regulated markets in the United States and Latin America. Through its brands BetRivers.com and PlaySugarHouse.com, RSI was an early entrant in many regulated jurisdictions and is currently live with real-money mobile, online and/or retail operations in 15 U.S. states.

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction, Weighted Alpha above 50+ and a 60-Month Beta over 1.5. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. RSI checks those boxes. The Trend Seeker issued a new “Buy” signal on June 9. Since then, the stock has gained 19%.

Barchart’s Technical Indicators for Rush Street Interactive

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Rush Street Interactive scored an all-time high of $33.42 on July 9.

• Rush Street has a Weighted Alpha of +124.44.
• RSI has a 100% “Buy” opinion from Barchart.
• The stock has gained 111.02% over the past 52 weeks.
• Rush Street has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $32.97 with a 50-day moving average of $28.41.
• RSI has made 11 new highs and gained 19.01% over the past month.
• 60-month beta of 1.56.
• Relative Strength Index (RSI) is at 68.11.
• There’s a technical support level around $32.19.

Don’t Forget the Fundamentals

• $7.52 billion market capitalization.
• 115.39x trailing price-earnings ratio.
• Revenue is projected to grow 34.11% this year and another 15.34% next year.
• Earnings are estimated to increase 62.41% this year and an additional 38.74% next year.

Analyst and Investor Sentiment on Rush Street Interactive

• The Wall Street analyst followed by Barchart gives the stock 9 “Strong Buy,” 1 “Moderate Buy,” and 2 “Hold” opinions with price targets between $26 and $33.
• Value Line rates the stock “Average.”
• CFRA’s MarketScope rates the stock a “Buy.”
• Morningstar thinks the stock is overvalued by 16% with a fair value of $27.77.
• 5,850 investors are following the stock on Seeking Alpha, which rates it a “Buy.” Its analysts note a high valuation as its only drawback.
• Short interest is a reasonable 4.37% of the float with 4.64 days to cover the float.

The Bottom Line on Rush Street Interactive

You've heard me say many times: “In the long run those companies that continue to have increasing revenue, earnings, and cash flow will continue to have increases in price.”  

Last year, revenue increased by 22.70%, earnings by 1,234.72%, and cash flow by 74.41%. Analysts predict increases in all three both this year and next year too. My only concern is the 115.39x trailing price/earnings ratio. I can overlook that if I place disciplined stop loses.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.