Jim Cramer on Formula One Group: "I Think You're Getting an Amazing Opportunity to Make Some Real Money"

Formula One Group (NASDAQ:FWONK) is one of the stocks on which Jim Cramer gave his opinions. Cramer was bullish on the stock, as he stated:

Liberty Media has an infamously complex corporate structure… But they’ve historically had tracking stocks for their subsidiaries that give you something like a pure play in niche businesses like this one. Liberty Formula One represents ownership of the Formula 1 Auto Racing League, MotoGP for Grand Prix motorcycle racing, and a bunch of minority investments in a grab bag of different things. If you want to own this one… I’m going to recommend: the series C, as in Charlie shares, which trade under this ticker FWONK… because they have the most liquidity… At $83 and change, I think it’s a terrific buying opportunity…

Seeing Wells Fargo basically cover its short, so to speak, on Formula One was pretty encouraging because they’ve been the biggest sell-side bear on the stock, which has 13 Buy ratings and four Holds. In fact, even after raising its price target to $95, Wells still has the lowest price target for this thing. Everyone else, even the few analysts with Holds, well, they have price targets north of $100. Finally, valuation-wise, I won’t lie to you, Formula One’s not cheap. It’s expensive, trading around 42 times this year’s earnings estimate, but I’m willing to pay up for this stock because it’s got an incredibly unique business. In fact, I would argue that Formula One deserves a premium just for its scarcity value alone.

Plus, if you look back to where the stock started trading about two and a half years ago, this is actually the cheapest it’s ever been on a PE or price-to-earnings basis. So here’s the bottom line: This weekend, a new season of Formula 1 racing begins on Apple TV. But as you watch the action on the track, maybe consider opening a new position in Formula One shares. This is one of the few business opportunities in pro sports that you can participate in directly. Stock’s been a good long-term performer, but after its recent pullback over the past five months, I think you’re getting an amazing opportunity to make some real money.

Photo by Artem Podrez on Pexels

Formula One Group (NASDAQ:FWONK) manages the commercial rights to the FIA Formula One World Championship, a global racing series.