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3 Casino Stocks to Buy Now

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Perhaps it’s because trading stocks can often mirror the thrill of winning big at the blackjack tables, or maybe it’s because Las Vegas conjures images of the world’s most flashy brands and businessmen. Regardless of the reason, it’s clear that casino stocks are always among the most popular on Wall Street.

Luckily for investors, now is also a great time to be buying casino stocks, as continued domestic strength and a great recovery in Macau have led to rising share prices. In fact, according to our Zacks Industry Rank data, the overall gaming industry has gained more than 19% year-to-date, outpacing the S&P 500’s mere 9% gain.

With casino stocks this hot right now, investors are not going to want to miss out. Luckily, we can use Zacks’ proven stock-picking methods to find solid stocks in any industry. Check out these highly-ranked casino stocks today:

1.       Wynn Resorts (WYNN - Free Report)

Led by the legendary Steve Wynn, this iconic gaming brand once again posted impressive earnings results in the most recent quarter. Wynn reported earnings of $1.24 per share and revenues of $1.48 billion, surpassing our respective consensus estimates of $0.74 and $1.34 billion. The company’s new Macau resort, the Wynn Palace, marked its second full quarter of operations, lifting total revenue figures 48% on a year-over-year basis.

Since the report, we’ve seen a flurry of earnings estimate revision activity for WYNN, lifting its current-quarter Zacks Consensus Estimate by 28 cents and giving the stock a Zacks Rank #2 (Buy). And looking down the road, Wynn is positioned well in Macau and Vegas; the company just finalized plans for the Le Reve which it has designed to be the preeminent luxury hotel and destination casino resort in Sin City.

 

2.       Melco Crown Entertainment (MLCO - Free Report)

Melco Crown was another casino giant that really impressed in the most recent earnings season. The company, which gets the majority of its revenue from Macau, posted adjusted earnings of $0.24 per share, crushing the Zacks Consensus Estimate of $0.08. Revenues of $1.28 billion also topped our consensus estimate and soared 15.7% year-over-year.

Revenues in Macau grew 25.9% in the month of May, marking the eleventh-straight month of growth in the region. This is great news for Melco Crown, which has steadily risen all year. Indeed, shares are up nearly 37% year-to-date. Nevertheless, this Zacks Rank #2 (Buy) stock is poised to break even higher.

 

3.       Las Vegas Sands (LVS - Free Report)

With properties like the Venetian and the Parisian, Las Vegas Sands is the epitome of luxury and style in the casino industry. After beating the Zacks Consensus Estimate in the latest quarter, the company is looking to continue its impressive momentum in the current quarter, where our latest consensus estimates call for EPS growth of 11% and revenue growth of 9%.

Overall, this stock has a Zacks Rank #2 (Buy) and a VGM grade of “A.” Las Vegas Sands boasts a net margin of 15.5% and RoE of 24.7%, both of which are better than their respective industry averages. This stock also has an “A” grade for Momentum and its full-year EPS estimates have gained 5% over the past 60 days.

 

Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think. See This Ticker Free >>


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Las Vegas Sands Corp. (LVS) - free report >>

Wynn Resorts, Limited (WYNN) - free report >>

Melco Resorts & Entertainment Limited (MLCO) - free report >>