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Here's Why Light & Wonder (LNW) is a Solid Investment Option
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Shares of Light & Wonder, Inc. (LNW - Free Report) have surged 31.9% over the past year, driven by an improved market demand across its portfolio on the back of a flexible business model. Earnings estimates for the current fiscal year have increased 87.4% each since August 2023, while that for the next fiscal are up 31.8%, implying robust inherent growth potential. With healthy fundamentals, this Zacks Rank #2 (Buy) stock appears to be a solid investment option at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Growth Drivers
Las Vegas-based Light & Wonder, formerly known as Scientific Games Corporation, is a leading developer of technology-based products and services and associated content for the gaming, social and digital gaming industries globally. The company changed its name on Apr 28, 2022, due to the sale of the Lottery Business that continues to use the previous name of Scientific Games.
Light & Wonder strives to be a leading cross-platform global games company with a focus on content and digital markets. The company aims to create games and evergreen franchises that can be made available to players on any platform they want to play. It follows a holistic growth strategy and intends to extend its footprint in high-return markets and strategic adjacencies that generate strong long-term cash-based returns.
The company’s products are installed in all the major regulated U.S. gaming jurisdictions and approximately 185 international gaming jurisdictions. International expansions provide significant growth opportunities for Light & Wonder. The company seeks to expand its server-based gaming machine business outside the United Kingdom. Moreover, the company collaborated with Tabcorp to elevate Keno gaming experience in Australia.
Light & Wonder is benefiting from the addition of a game development talent base. With improved content both in the United States and globally, this is likely to accelerate productivity of the company. In addition, an enhanced focus on product categories and a realigned incentives strategy for game developers is likely to come to fruition. Moreover, opportunities in adjacent markets are increasingly gaining traction. All these augur well for the long-term growth of the company.
It delivered a solid earnings surprise of 58.6%, on average, in the trailing four quarters.
Other Key Picks
Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 19.8% and delivered an earnings surprise of 12%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
United States Cellular Corporation (USM - Free Report) , sporting a Zacks Rank #1, is the fourth largest full-service wireless carrier in the United States. The company provides a range of wireless products and services, and a high-quality network to increase the competitiveness of local businesses and improve the efficiency of government operations.
U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer the best wireless experience to customers by providing superior quality network and national coverage. It is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology. The company is well-positioned for continued demand for broadband.
Comtech Telecommunications Corp. (CMTL - Free Report) , carrying a Zacks Rank #2, is another solid pick. Headquartered in Melville, NY, the company is a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies to commercial and government customers.
Comtech’s key satellite earth station modems incorporate forward error correction and bandwidth compression technologies, which enable its customers to optimize their satellite networks by either reducing their satellite transponder lease costs or increasing data.
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Here's Why Light & Wonder (LNW) is a Solid Investment Option
Shares of Light & Wonder, Inc. (LNW - Free Report) have surged 31.9% over the past year, driven by an improved market demand across its portfolio on the back of a flexible business model. Earnings estimates for the current fiscal year have increased 87.4% each since August 2023, while that for the next fiscal are up 31.8%, implying robust inherent growth potential. With healthy fundamentals, this Zacks Rank #2 (Buy) stock appears to be a solid investment option at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Growth Drivers
Las Vegas-based Light & Wonder, formerly known as Scientific Games Corporation, is a leading developer of technology-based products and services and associated content for the gaming, social and digital gaming industries globally. The company changed its name on Apr 28, 2022, due to the sale of the Lottery Business that continues to use the previous name of Scientific Games.
Light & Wonder strives to be a leading cross-platform global games company with a focus on content and digital markets. The company aims to create games and evergreen franchises that can be made available to players on any platform they want to play. It follows a holistic growth strategy and intends to extend its footprint in high-return markets and strategic adjacencies that generate strong long-term cash-based returns.
The company’s products are installed in all the major regulated U.S. gaming jurisdictions and approximately 185 international gaming jurisdictions. International expansions provide significant growth opportunities for Light & Wonder. The company seeks to expand its server-based gaming machine business outside the United Kingdom. Moreover, the company collaborated with Tabcorp to elevate Keno gaming experience in Australia.
Light & Wonder is benefiting from the addition of a game development talent base. With improved content both in the United States and globally, this is likely to accelerate productivity of the company. In addition, an enhanced focus on product categories and a realigned incentives strategy for game developers is likely to come to fruition. Moreover, opportunities in adjacent markets are increasingly gaining traction. All these augur well for the long-term growth of the company.
It delivered a solid earnings surprise of 58.6%, on average, in the trailing four quarters.
Other Key Picks
Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 19.8% and delivered an earnings surprise of 12%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
United States Cellular Corporation (USM - Free Report) , sporting a Zacks Rank #1, is the fourth largest full-service wireless carrier in the United States. The company provides a range of wireless products and services, and a high-quality network to increase the competitiveness of local businesses and improve the efficiency of government operations.
U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer the best wireless experience to customers by providing superior quality network and national coverage. It is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology. The company is well-positioned for continued demand for broadband.
Comtech Telecommunications Corp. (CMTL - Free Report) , carrying a Zacks Rank #2, is another solid pick. Headquartered in Melville, NY, the company is a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies to commercial and government customers.
Comtech’s key satellite earth station modems incorporate forward error correction and bandwidth compression technologies, which enable its customers to optimize their satellite networks by either reducing their satellite transponder lease costs or increasing data.