Is the Lottery Corp share price a buy ahead of earnings season?

A young woman sits with her hand to her chin staring off to the side thinking about fixed income opportunities in 2022 at her computer with a pen in her other hand and a cup of coffee beside. her in a home office environment.A young woman sits with her hand to her chin staring off to the side thinking about fixed income opportunities in 2022 at her computer with a pen in her other hand and a cup of coffee beside. her in a home office environment.

The Lottery Corporation Ltd (ASX: TLC) share price has been able to dodge the worst of falling markets so far this year. Although, the question is: will that hold true after presenting some numbers?

That time of the year when we get an updated look at the financials of ASX-listed companies is fast approaching. For the Lottery Corp, this day is expected to arrive on 24 August — with the lottery business slated to post its maiden full-year results as a standalone company.

In the meantime, investors looking to allocate capital will be attempting to evaluate whether Lottery Corp shares are worth their time. For those eager individuals, there are 34 days between now and the release of results.

Before making a decision, it might be worthwhile looking at what experts are saying about the Lottery Corp share price.

Finding favour among experts

Amid the heightened volatility and global destabilisation, many investors are seeking out predictability. As such, the newly demerged lottery business operating as the aptly named Lottery Corporation is finding a home among defensive investors.

As my colleague Tony Yoo covered, Morgans senior analyst Alexander Mees forecasts a steady performance in the upcoming results. According to the analyst, the company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) could increase by 13% to $691 million.

In the light of the positive expectations, the Morgans team has assigned an ‘add’ rating to the Lottery Corp share price.

Another market commentator shining an optimistic light on Lottery Corp shares is Shaw and Partners senior investment adviser Adam Dawes. In a recent interview, Dawes discussed the potential for the company to receive a takeover bid.

According to Dawes, the Star Entertainment Group Ltd (ASX: SGR) might find the value proposition within the Lottery Corp attractive. However, the adviser caveated this statement, saying that is merely speculation at this stage.

How has the Lottery Corp share price performed?

Shares in Lottery Corp have weakened by approximately 4.7% since listing in May this year. However, the S&P/ASX 200 Index (ASX: XJO) is also down 4.7% over the same time frame.

The company currently holds a market capitalisation of $9.9 billion, giving it a price-to-earnings (P/E) ratio of approximately 43 times based on its 12-month trailing earnings at the end of December 2021.

The post Is the Lottery Corp share price a buy ahead of earnings season? appeared first on The Motley Fool Australia.

Should you invest $1,000 in The Lottery Corporation Limited right now?

Before you consider The Lottery Corporation Limited, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and The Lottery Corporation Limited wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/xfarF9p

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s