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The Zacks Analyst Blog Highlights: Penn National Gaming, Boyd Gaming and Melco Resorts & Entertainment
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For Immediate Release
Chicago, IL – Dec 28, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Penn National Gaming Inc. (PENN - Free Report) , Boyd Gaming Corporation (BYD - Free Report) and Melco Resorts & Entertainment Limited (MLCO - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Gambling Stock Roundup: PENN, BYD Announce Buyouts, MLCO Launches Hotel Brand
The last week saw gambling industry players Penn National Gaming Inc. and Boyd Gaming Corporation announcing buyouts.
Melco Resorts & Entertainment Limited announced the launch of a luxury hotel brand, NUWA.
Week’s Most Important Stories in Detail
Penn National agreed to buy Pinnacle Entertainment Inc. (PNK) for $1.87 billion in cash and stock. Taking into account Pinnacle Entertainment’s debt, the total value of the deal is $2.8 billion. Pinnacle shareholders will get $20.00 in cash and 0.42 shares of Penn National shares for each Pinnacle share they own. This brings the purchase price to $32.47 per Pinnacle share based on Penn National’s closing price as of Dec 15.
As part of the deal, Penn National agreed to sell Pinnacle's gaming operations in Missouri, Indiana and Ohio to Boyd Gaming Corporation for $575 million in cash. The transaction is anticipated to close in the second half of 2018. The deal is expected to yield $100 million in annual run-rate cost savings within 2 years of closing.
Boyd Gaming announced that it will purchase Valley Forge Casino Resort in King of Prussia, Pennsylvania, from Valley Forge Convention Center Partners, L.P., for $280.5 million cash.
The company looks to leverage on the opportunities that opened up upon Pennsylvania's recent passage of gaming expansion legislation. The acquisition is expected to positively impact Boyd’s free cash flow and be immediately accretive to its earnings.
Melco Resorts announced the launch of a luxury hotel brand, NUWA. Scheduled to be launched in Macau and Manila on Jan 16, 2018, the brand launch is in line with the company’s plan to present phase III of City of Dreams Macau in the second quarter of 2018. The brand will substitute the Crown Towers Hotels, which is slated to expire soon.
With the introduction of NUWA, Melco expects to strengthen its operations in City of Dreams. The company believes that an increase in luxury hotel room inventory will bode well for the property's gaming operations. Further, long-term growth at the property will be driven by the company’s core mission to enhance guest experience.
In the last six months, the price performance of gambling stocks has been impressive. Among the stocks that appreciated the most were Pinnacle Entertainment and Monarch Casino that rallied 65.9% and 48.8%, respectively. Wynn Resorts, Century Casinos, Melco Resorts, Boyd and Penn National Gaming gained 24%, 27.6%, 27.6%, 40.8% and 42.7% respectively in the same time frame.
What’s Next in the Gambling Space?
We note that gambling stocks have oscillated between gains and losses in recent sessions and investors can expect this volatility to continue in the coming days.
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.
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Penn National Gaming, Boyd Gaming and Melco Resorts & Entertainment
For Immediate Release
Chicago, IL – Dec 28, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Penn National Gaming Inc. (PENN - Free Report) , Boyd Gaming Corporation (BYD - Free Report) and Melco Resorts & Entertainment Limited (MLCO - Free Report) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday’s Analyst Blog:
Gambling Stock Roundup: PENN, BYD Announce Buyouts, MLCO Launches Hotel Brand
The last week saw gambling industry players Penn National Gaming Inc. and Boyd Gaming Corporation announcing buyouts.
Melco Resorts & Entertainment Limited announced the launch of a luxury hotel brand, NUWA.
Week’s Most Important Stories in Detail
Penn National agreed to buy Pinnacle Entertainment Inc. (PNK) for $1.87 billion in cash and stock. Taking into account Pinnacle Entertainment’s debt, the total value of the deal is $2.8 billion. Pinnacle shareholders will get $20.00 in cash and 0.42 shares of Penn National shares for each Pinnacle share they own. This brings the purchase price to $32.47 per Pinnacle share based on Penn National’s closing price as of Dec 15.
As part of the deal, Penn National agreed to sell Pinnacle's gaming operations in Missouri, Indiana and Ohio to Boyd Gaming Corporation for $575 million in cash. The transaction is anticipated to close in the second half of 2018. The deal is expected to yield $100 million in annual run-rate cost savings within 2 years of closing.
Boyd Gaming announced that it will purchase Valley Forge Casino Resort in King of Prussia, Pennsylvania, from Valley Forge Convention Center Partners, L.P., for $280.5 million cash.
The company looks to leverage on the opportunities that opened up upon Pennsylvania's recent passage of gaming expansion legislation. The acquisition is expected to positively impact Boyd’s free cash flow and be immediately accretive to its earnings.
Melco Resorts announced the launch of a luxury hotel brand, NUWA. Scheduled to be launched in Macau and Manila on Jan 16, 2018, the brand launch is in line with the company’s plan to present phase III of City of Dreams Macau in the second quarter of 2018. The brand will substitute the Crown Towers Hotels, which is slated to expire soon.
With the introduction of NUWA, Melco expects to strengthen its operations in City of Dreams. The company believes that an increase in luxury hotel room inventory will bode well for the property's gaming operations. Further, long-term growth at the property will be driven by the company’s core mission to enhance guest experience.
In the last six months, the price performance of gambling stocks has been impressive. Among the stocks that appreciated the most were Pinnacle Entertainment and Monarch Casino that rallied 65.9% and 48.8%, respectively. Wynn Resorts, Century Casinos, Melco Resorts, Boyd and Penn National Gaming gained 24%, 27.6%, 27.6%, 40.8% and 42.7% respectively in the same time frame.
What’s Next in the Gambling Space?
We note that gambling stocks have oscillated between gains and losses in recent sessions and investors can expect this volatility to continue in the coming days.
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 >>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.