Stocks to buy

Is fuboTV (NYSE:FUBO) stock gathering momentum for another bounce? Could this cable-cutting TV stock be rebounding after finally hitting a bottom? It certainly appears that way.

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FUBO stock is a long way from its December high of $62, and it’s even a distance away from its 2021 high of $52, set in early February.

But fuboTV seems to have recovered from a horrendous spring, in which, just a month ago, it was below $20. Since then, the stock gained a nifty 72% and is challenging the $30 range yet again.

Even better, FUBO is coming off a glistening first-quarter earnings report in which it reported big gains in revenue and audience.

So perhaps the best is still yet to come for fuboTV.

FuboTV at a Glance

Based in New York, fuboTV is a streaming television service that is capitalizing on the continuing trend of Americans who are ditching their cable TV services and opting for streaming video packages.

Unlike some other streaming services, however, fuboTV has an emphasis on carrying live sports, including international soccer, tennis, golf and major American sports leagues.

It also has plenty of non-sports options that you’ll find on traditional streaming platforms. But it’s the emphasis on live sports among its more than 100 offerings that makes fuboTV stand out. In all, the company says it streams more than 50,000 live sporting events annually.

The key for FUBO stock is getting the service in front of customers. Sports-happy viewers are likely to be accustomed to turning to ESPN’s platform of networks. But they may not be familiar with the fuboTV lineup.

Fortunately for shareholders, fuboTV is making inroads. Earlier this spring, the company announced a deal with Marquee Sports Network to bring the MLB’s Chicago Cubs to the fuboTV platform.

It also acquired exclusive streaming rights to the South American Qatar World Cup 2022 Qualifiers, which will feature popular teams such as Argentina, Brazil and Uruguay.

And earlier this month, fuboTV announced that its app would be launched on LG Electronics smart TVs in the U.S. That should help it compete directly with other streaming services.

Earnings Are a Winner for FUBO Stock

FuboTV stock jumped by 17% in June when the company announced first-quarter earnings results. And it’s clear why investors were so pleased.

Revenue in the quarter came in at $119.7 million, which was a 135% increase on a year-over-year basis. Subscriber growth came in at a 105% increase, reaching 590,000. The company reported average revenue per user was $69.09, which was a gain of 28%.

CEO David Gandler said it was an “outstanding” quarter.

“We believe they are choosing fuboTV, enticed by superior value, our year-round content offerings and a customer-centric, innovative consumer product experience relative to legacy pay TV (cable/satellite/telco). We see this trend continuing to accelerate as more consumers discover they can cut the cord without losing access to the sports teams, live channels and content they love.”

FuboTV also acquired market access licenses to run sportsbooks in Indiana, Iowa and New Jersey, with plans to add more. The company plans to launch a free-to-play gaming option in the third quarter, in addition to its sportsbook.

Evercore ISI analyst Shweta Khajuria called it a “home run” earnings report. She noted that FUBO stock achieved sequential subscriber and revenue growth for the first time in any quarter. She maintained an “outperform” rating on FUBO stock.

The Bottom Line

Not surprisingly, fuboTV increased its 2021 guidance to a range of $520 million to $530 million. That’s an improvement from previous guidance of $472.6 million. The new guidance projects year-over-year growth of 101%.

Based on its first-quarter growth, those numbers are certainly reasonable. And now that FUBO stock is trading at a discount compared to where it stood in February, there’s good reason to surmise that fuboTV stock will be a winner for the foreseeable future.

FUBO stock has a B rating and a buy recommendation in my Portfolio Grader right now.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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