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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 gambling stocks are always among the most popular on Wall Street.
Luckily for investors, now is also a great time to be buying gambling stocks, as continued domestic strength, a great recovery in Macau, and overall international interest in gaming have led to rising share prices. In fact, according to our Zacks Industry Rank data, the overall “Gaming” industry has gained more than 44.62% year-to-date, outpacing the S&P 500’s respectable 21.44% 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 casino stocks today:
Led by the legendary Steve Wynn, this iconic gaming brand is looking strong after another solid earnings report. Wynn crushed estimates on the top and bottom line, expanded its operations in key markets, and posted EPS and revenue growth rates of over 100% and 45%, respectively. These great results have led to positive earnings estimate revisions, helping the stock earn a Zacks Rank #1 (Strong Buy).
Thanks to these revisions, the Zacks Consensus Estimate for Wynn’s upcoming fiscal year has gained a staggering 44 cents over the past 60 days. Furthermore, the company is growing its cash flow by nearly 12% and generating a whopping $7.61 in cash per share right now. Wynn’s valuation metrics might cause some hesitation, but its P/E of 31.12 and P/S of 2.88 are not far off the industry averages and certainly within a reasonable range.
Monarch Casino & Resort operates the Atlantis Casino Resort in Reno, Nevada, as well as the Monarch Black Hawk Casino in Black Hawk, Colorado. MCRI is currently sporting a Zacks Rank #2 (Buy). The company is projected to post modest growth figures this year, with current consensus estimates calling for EPS growth of 9% and revenue growth of 8%.
For example, the company’s historical cash flow growth of 12% and net margin of 12% significantly outpace the industry averages. Also, the company’s property in Reno is considered a hidden Tesla (TSLA) play, as the resort sits near the carmaker’s new gigafactory and should benefit from economic growth in the area.
3. The Stars Group
The Stars Group is a leading designer of technology-based gaming products and operator of online gaming platforms. While not technically a casino company, TSG gives investors a gambling-related play without the risks inherent to property operation. The stock is currently sporting a Zacks Rank #2 (Buy).
It has been a year of strong earnings and revenue growth for TSG, but its share price has not totally caught up yet. Indeed, with a Value score of “A” and a P/E of 10.20, we can see some undervaluation here. Moreover, management is growing its cash flow by 19% right now, and the company’s net margin of 20% and RoE of 24% further highlight its financial strength.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
3 Casino Stocks to Buy Now
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 gambling stocks are always among the most popular on Wall Street.
Luckily for investors, now is also a great time to be buying gambling stocks, as continued domestic strength, a great recovery in Macau, and overall international interest in gaming have led to rising share prices. In fact, according to our Zacks Industry Rank data, the overall “Gaming” industry has gained more than 44.62% year-to-date, outpacing the S&P 500’s respectable 21.44% 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 casino stocks today:
1. Wynn Resorts (WYNN - Free Report)
Led by the legendary Steve Wynn, this iconic gaming brand is looking strong after another solid earnings report. Wynn crushed estimates on the top and bottom line, expanded its operations in key markets, and posted EPS and revenue growth rates of over 100% and 45%, respectively. These great results have led to positive earnings estimate revisions, helping the stock earn a Zacks Rank #1 (Strong Buy).
Thanks to these revisions, the Zacks Consensus Estimate for Wynn’s upcoming fiscal year has gained a staggering 44 cents over the past 60 days. Furthermore, the company is growing its cash flow by nearly 12% and generating a whopping $7.61 in cash per share right now. Wynn’s valuation metrics might cause some hesitation, but its P/E of 31.12 and P/S of 2.88 are not far off the industry averages and certainly within a reasonable range.
2. Monarch Casino & Resort (MCRI - Free Report)
Monarch Casino & Resort operates the Atlantis Casino Resort in Reno, Nevada, as well as the Monarch Black Hawk Casino in Black Hawk, Colorado. MCRI is currently sporting a Zacks Rank #2 (Buy). The company is projected to post modest growth figures this year, with current consensus estimates calling for EPS growth of 9% and revenue growth of 8%.
For example, the company’s historical cash flow growth of 12% and net margin of 12% significantly outpace the industry averages. Also, the company’s property in Reno is considered a hidden Tesla (TSLA) play, as the resort sits near the carmaker’s new gigafactory and should benefit from economic growth in the area.
3. The Stars Group
The Stars Group is a leading designer of technology-based gaming products and operator of online gaming platforms. While not technically a casino company, TSG gives investors a gambling-related play without the risks inherent to property operation. The stock is currently sporting a Zacks Rank #2 (Buy).
It has been a year of strong earnings and revenue growth for TSG, but its share price has not totally caught up yet. Indeed, with a Value score of “A” and a P/E of 10.20, we can see some undervaluation here. Moreover, management is growing its cash flow by 19% right now, and the company’s net margin of 20% and RoE of 24% further highlight its financial strength.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>