The Jumbo Interactive Ltd (ASX: JIN) share price has been gradually ascending throughout 2021.
However, the online lottery operator is still nearly 40% below its all-time high. This milestone was set back in October 2019 when shares reached $27 apiece. Soon after this, a reversal in the company’s share price saw it plummet to $8.35 in the space of 5 months.
Now, having reclaimed nearly half of its fall, is the Jumbo Interactive share price a buy?
What’s to like about the Jumbo Interactive share price?
While the Jumbo share price might be lower than where it was in 2019, the lottery operator’s revenue certainly isn’t. For the year ending 30 June 2019, the company reported revenue of $65.2 million. Two years on and Jumbo has grown that amount to $83.3 million.
This amount could be set to increase with one fund manager expecting a change to the Oz Lottery to result in bigger jackpots. As Arden Jennings from Ausbil Investment Management points out, Jumbo holds a leveraged exposure to bigger jackpots.
Furthermore, the company’s efforts to expand internationally in recent years have placed it into the UK and Canadian lottery markets. Jennings is eager to see Jumbo dip its toes into the United States market in the next year or two with a US state lottery acquisition. At the end of June, the company held $63.1 million in cash and cash equivalents on its books.
Jennings is not the only one finding the ASX lottery provider an appealing proposition at the moment. In addition, the team behind Wavestone Capital has picked Jumbo as its entry into the “The Golden Bull” stock picking competition for 2022.
The Sydney-based fund manager likes the potential in the Jumbo Interactive share price now that it has resigned its licensing. From here, the investing team thinks the company will be able to retain its newly acquired customers and beat earnings expectations.
Shares in the company have rewarded investors, returning 22% so far this year.