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Perhaps it is because trading stocks can often mirror the thrill of winning big at the blackjack tables, or maybe it is because Las Vegas conjures images of the world’s most flashy brands and businessmen. Regardless of the reason, it is 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 35.15% in the past year, outpacing the S&P 500’s respectable 17.53% 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:
With properties like the Venetian and the Parisian, Las Vegas Sands is the epitome of luxury and style in the casino industry. LVS is currently sporting a Zacks Rank #2 (Buy) and holds a “B” grade for Growth in our Style Scores system. Our current consensus estimates are calling for EPS growth of 9.5% this fiscal year and an additional 8.3% next year.
Las Vegas Sands is also generating cash flow growth of 19.8% right now. The firm is now bringing in about $4.58 in cash per share, nearly quadrupling its industry’s average. LVS also boasts a better-than-average net margin of 21.8% and RoE 34.8%. Finally, management is currently offering a dividend yield of about 4%.
MGM Resorts is a dominant force in Vegas and Macau, operating a portfolio of destination resort brands, including Bellagio, MGM Grand, Mandalay Bay, and The Mirage. The stock is currently holding a Zacks Rank #2 (Buy) and holds an “A” grade for Momentum in our Style Scores system.
MGM is expected to report its latest quarterly results next week. Earnings are expected to be down from the year-ago period, but the company’s Most Accurate Estimate—a representation of the most-recent analyst estimates—is 42.5% higher than its consensus. That means that analysts are warming up to MGM right now, making us feel more comfortable about the possibility of an earnings beat.
3. Eldorado Resorts, Inc.
Eldorado Resorts provides casino and entertainment services primarily in Nevada and Louisiana. The company is known for its Isle of Capri and Lady Luck properties, among others. ERI is currently sporting a Zacks Rank #2 (Buy), and the stock holds “A” grades in our Growth and Momentum categories.
Eldorado will reports its Q4 earnings next week, but our attention is focused on the stock’s fiscal 2018 outlook. The company has witnessed strong earnings estimate revision activity for the year, sending its Zacks Consensus Estimate about 48 cents higher over the past 60 days. The company is also expected to see its revenues grow by about 18% in the year.
Meanwhile, the stock has Forward P/E of just 16 and a P/S of 2, meaning that investors are getting a decent price for this outlook right now.
Want more analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
3 Casino Stocks to Buy Now
Perhaps it is because trading stocks can often mirror the thrill of winning big at the blackjack tables, or maybe it is because Las Vegas conjures images of the world’s most flashy brands and businessmen. Regardless of the reason, it is 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 35.15% in the past year, outpacing the S&P 500’s respectable 17.53% 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. Las Vegas Sands Corp. (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. LVS is currently sporting a Zacks Rank #2 (Buy) and holds a “B” grade for Growth in our Style Scores system. Our current consensus estimates are calling for EPS growth of 9.5% this fiscal year and an additional 8.3% next year.
Las Vegas Sands is also generating cash flow growth of 19.8% right now. The firm is now bringing in about $4.58 in cash per share, nearly quadrupling its industry’s average. LVS also boasts a better-than-average net margin of 21.8% and RoE 34.8%. Finally, management is currently offering a dividend yield of about 4%.
2. MGM Resorts International (MGM - Free Report)
MGM Resorts is a dominant force in Vegas and Macau, operating a portfolio of destination resort brands, including Bellagio, MGM Grand, Mandalay Bay, and The Mirage. The stock is currently holding a Zacks Rank #2 (Buy) and holds an “A” grade for Momentum in our Style Scores system.
MGM is expected to report its latest quarterly results next week. Earnings are expected to be down from the year-ago period, but the company’s Most Accurate Estimate—a representation of the most-recent analyst estimates—is 42.5% higher than its consensus. That means that analysts are warming up to MGM right now, making us feel more comfortable about the possibility of an earnings beat.
3. Eldorado Resorts, Inc.
Eldorado Resorts provides casino and entertainment services primarily in Nevada and Louisiana. The company is known for its Isle of Capri and Lady Luck properties, among others. ERI is currently sporting a Zacks Rank #2 (Buy), and the stock holds “A” grades in our Growth and Momentum categories.
Eldorado will reports its Q4 earnings next week, but our attention is focused on the stock’s fiscal 2018 outlook. The company has witnessed strong earnings estimate revision activity for the year, sending its Zacks Consensus Estimate about 48 cents higher over the past 60 days. The company is also expected to see its revenues grow by about 18% in the year.
Meanwhile, the stock has Forward P/E of just 16 and a P/S of 2, meaning that investors are getting a decent price for this outlook right now.
Want more analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>