The Tabcorp (ASX:TAH) share price has beaten the ASX 200 by 25% this last year

The gaming entertainment group has outperformed the broader market over the last 12 months.

| More on:
man and woman looking at mobile phones in a celebratory manner

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

The Tabcorp Holdings Limited (ASX: TAH) share price has outperformed the S&P/ASX 200 Index (ASX: XJO) by a long shot over the last 12 months.

Since this time last year, the ASX 200 has gained 20.93%.

Meanwhile, the Tabcorp share price has soared 46.65%. It's currently trading at $5.04.

So, what's been driving the Tabcorp share price to perform better than most of its ASX 200 peers? Let's take a look.

Why has the Tabcorp share price outperformed?

The last 12 months have seen the Tabcorp share price boosted numerous times. Interestingly, the company's biggest daily gain came after it addressed media speculation on 6 November 2020.

Then, the company rebutted media reports that private equity firms and high-profile bookmaker Matthew Tripp were interested in acquiring Tabcorp.

Late on 5 November, The Australian reported a private equity consortium wished to purchase the then-struggling Tabcorp, valuing the business at around $9 billion. At the time, the company was reportedly worth $7.7 billion.

The publication also reported another group wanted to purchase Tabcorp's wagering business.

However, Tabcorp hit back at the reports by simply stating, "Tabcorp is not aware of, and has not received, any proposal in respect of the company or its businesses".

Despite the rumours being refuted, the Tabcorp share price shot 15.8% higher.

Then, on 2 February, the market heard more media speculation. This time, reports claimed a party was interested in purchasing Tabcorp's wagering arm which is attached to its media business.

This time, Tabcorp responded positively to the rumours, saying, "Tabcorp confirms that it has received a number of unsolicited approaches and proposals in relation to a potential transaction involving Tabcorp's Wagering and Media business".

Once again, the company's share price surged 8.7%.

Tabcorp did end up deciding to split its wagering and media segment from the rest of its business. However, it didn't sell it.

As it stands, Tabcorp is planning to spin off its Lotteries and Keno segment and focus only on its wagering and media business next year.

Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

More on Consumer Staples & Discretionary Shares

A smiling man take a big bite out of a burrito
Consumer Staples & Discretionary Shares

Fundie says Guzman Y Gomez share price 'looks highly attractive'. Here's why

Blackwattle Investment says Guzman Y Gomez's current valuation and risk/reward profile looks very appealing.

Read more »

a bearded man with a big smile wearing a bright red apron holds a knife in one hand and a big slab of cheese in the other as though he is about to slice it.
Consumer Staples & Discretionary Shares

What's the upside for Bega shares according to Macquarie?

This broker sees room to grow for this Aussie consumer staples company. 

Read more »

I young woman takes a bite out of a burrito n the street outside a Mexican fast-food establishment.
Broker Notes

How much upside does Macquarie see for Collins Foods shares?

The company is scheduled to report on 24 June.

Read more »

A team in a corporate office shares a pizza while standing around a table chatting about the Domino's share price.
Broker Notes

JP Morgan upgrades Domino's Pizza shares

Does the broker expect things to turn around?

Read more »

A block of cheese with grated cheese on top.
Consumer Staples & Discretionary Shares

Macquarie expects 20% upside for this ASX All Ords consumer staples stock

This week, Macquarie initiated coverage on Bega Cheese with an outperform rating.

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Consumer Staples & Discretionary Shares

Why are Cettire shares crashing 27% today?

Things aren't looking good for this online luxury products retailer.

Read more »

Young lady in JB Hi-Fi electronics store checking out laptops for sale
Consumer Staples & Discretionary Shares

Does Macquarie prefer Harvey Norman or JB Hi-Fi shares?

Here’s what this broker has to say about these consumer discretionary companies. 

Read more »

Happy couple doing grocery shopping together.
Consumer Staples & Discretionary Shares

What does Macquarie think Woolworths and Coles shares are worth?

Should investors be interested in supermarket stocks?

Read more »