Sportradar is the IBD Stock Of The Day for Thursday. Shares pushed above an early buy point in strong volume as SRAD stock angles toward its record high.
Switzerland-based Sportradar collects, analyzes and provides sports data for bookmakers, sports federations and media companies. The company's partners and clients include the NBA, MLB, NHL, Nascar, FIFA, the U.S. Soccer Federation, the Federation Internationale de l'Automobile, as well as various soccer leagues and tennis tours. Corporate partners include FanDuel, DraftKings, ESPN, Caesars Sportsbook and Snap.
The company on Thursday announced a partnership with DAZN, securing exclusive rights to distribute betting data and nonexclusive media content for the FIFA Club World Cup 2025.
The Club World Cup tournament features top teams from major soccer leagues around the world. This year's tournament will take place in the U.S. from June 14 to July 13. DAZN will broadcast the tournament globally.
Per the agreement, Sportradar will deliver data, content and live odds across all 63 tournament matches to its network of more than 800 betting operator clients and 900 media companies, Sportradar said. The company currently provides coverage of more than 150,000 matches annually across more than 900 soccer leagues.
Inter Miami will kick off the tournament in a match against Al Ahly of the Saudi Pro League at Hard Rock Stadium in Florida.
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Earnings Growth
Sportradar is also coming off a Q1 earnings beat on May 12.
Earnings increased to 8 cents per share, after zero cents last year. Revenue jumped almost 20% to $346 million.
FactSet analysts expected earnings per share of 6 cents on $345 million in revenue.
Sports content and technology sales jumped 33% to $68 million, outpacing views for $58.9 million.
Betting technology and solutions revenue increased 17% to $278 million, which fell short of estimates for $287 million.
Sportradar Stock
Sportradar stock is building a cup base with a 25.85 buy point. The weekly MarketSurge chart shows a four-week period of tight trading within the base. Aggressive investors could use the high of that area, 24.69, as an early buy point.
Shares pushed above the early entry on Thursday on an 11% surge in trading volume.
SRAD stock is sitting on a ten-month rally. It has climbed 45% so far this year and is closing in on its record high of 28.22 from September 2021.
Sportradar has a 21-day average true range ratio of 3.13%.
The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
With the S&P 500 and Nasdaq now in a power trend, investors can buy stocks with ATRs up to 8%, though they should be wary of being too concentrated in high-octane names.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
