We recently compiled a list of the 12 Best Growth Stocks Under $25 to Buy Now. In this article, we are going to take a look at where Sportradar Group AG (NASDAQ:SRAD) stands against the other growth stocks.
AI is the Most Defining Theme of 2025, Says Expert
Most experts agree that the AI wave is not over yet. On January 8, Wendy Sheehan Donnell, Editor-in-Chief at PCMag, joined Yahoo Finance from CES 2025 to share her take on trending innovations and the increasing role of artificial intelligence in revolutionizing industries.
Donnell unveiled some of the groundbreaking innovations spearheaded by companies from across the globe and emphasized that “AI is the prevailing theme” across all these new products and services. She highlighted the incidence of AI-powered home devices such as smart microwaves and fridges to help people live smarter and tech-immersed lives. She also shed light on the growing role of AI in healthcare and biotechnology, which will contribute to the well-being of people.
A Glance at the Tech Sector in 2025
The market close on Tuesday reiterated a similar pattern where tech stocks continued to shine, however, some analysts expect the market to broaden over the course of 2025. On January 7, Joe Mazzola, head trading and derivatives strategist at Charles Schwab, joined Yahoo Finance, to discuss his market thesis for the tech sector especially.
Mazzola suggested that the market breadth was of importance in the earnings season, and pointed towards the strengthening of the US dollar and how it may impact the earnings of tech names. He added that the market needs the other “493 names” in the S&P 500 to catch up. Mazolla also emphasized that while 2025 can be a win for Big Tech like 2024, a broadening would help the overall market immensely in terms of earnings.
He added that the financials sector would supposedly catalyze the broadening of the market, because of favorable economic and market conditions. He then discussed the tailwinds for financials and how the same factors serve as headwinds to Big Tech, emphasizing that the bullishness on tech has been slower than it was at the end of 2024.
Our Methodology
We used Finviz to look for companies operating in growth sectors such as technology, financials (fintech), biotech, and communication services. We only focused on companies with a market cap of at least $2 billion and that gained more than 50% over the past 2 quarters. We then examined the hedge fund sentiment surrounding 25 stocks and picked the 12 stocks that were the most widely held by hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A customer data analyst working at a computer, surrounded by monitors displaying live sports data.
Sportradar Group AG (NASDAQ:SRAD)
Number of Hedge Fund Holders: 24
Share Price as of January 8, 2024: $18.15
Sportradar Group AG (NASDAQ:SRAD) is a sports technology company based in Switzerland. The company analyzes, manages, and collects data for bookmakers, sports federations, and media companies. Some of its prominent clients include the National Basketball Association, the ATP Tour, NASCAR, and UEFA, to name a few. During the third quarter of 2024, the company increased its revenue by 27% to EUR 255 million. During the same period, the company reported a profit worth EUR 37 million. In addition to profitability, Sportradar Group AG (NASDAQ:SRAD) also boasts a remarkable liquidity situation, with its free cash flow strengthening its balance sheet and bolstering business growth.
The company drove most of its revenue from its betting technology and solutions segment, which reached EUR 210 million in revenue and grew by 32% year-over-year. In addition to that, its customer base in the United States proved to be very important for the company, with revenues from the US growing by 46% year-over-year. Customer retention rate also grew tremendously, by nearly 126%, during the quarter, demonstrating SRAD’s strength in retaining and expanding its customer base.
Sportradar Group AG (NASDAQ:SRAD) is not only progressing on the financial front, but it is emerging as a prominent name in the industry because of its strong partnerships with sports organizations and innovative product lineup for the 2024-2025 season. This combined with its solid fundamentals explains why 24 hedge funds were bullish on the stock at the close of Q3 2024.
Overall SRAD ranks 10th on our list of the best growth stocks under $25 to buy now. While we acknowledge the potential of SRAD as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SRAD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
