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Scientific Games Launches Slot Game Featuring Ron Burgundy

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Scientific Games Corporation (SGMS - Free Report) announced the launch of its new five-reel, 25-line video slot game named Anchorman: The Legend of Ron Burgundy, which will be available across North America soon.

The game, based on Paramount Pictures' comedy franchise, ANCHORMAN, is designed for the new TwinStar V24/43 cabinet that “features best-in-class processing power, eye-catching 24-inch and 43-inch HD displays, interactive touch controls, and an immersive sound system that makes for a superior player experience.”

We believe the new game will help to sustain the momentum in Scientific Games’ shares, which have gained 149.7% year to date, substantially outperforming the industry’s 9.8% rally.

Growth in Gaming Segment

In the last reported quarter, almost 60% of the company’s total revenue was contributed by its gaming segment, which was driven by growth in Gaming Machine sales and Gaming Systems. Management noted that the company’s Gamescape, Pro Wave, and TwinStar cabinets along with J43 and three-reel mechanical cabinets have been instrumental in boosting its gaming segment.

Per Technavio, the global slot machines market is forecast to witness CAGR of 15.49% during the period 2017-2021. The company’s continuous efforts to launch products will help it to cash in on the growing market in our view.

Notably, in June 2017, Scientific Games launched its first skill-based slot machine – Space Invaders – based on the popular classic arcade video game, which was featured on the Blade s32 cabinet.

In the same month, the company also launched- The SIMPSONS - based on characters and settings from the record-breaking popular animated television series, and showcased it on the Gamescape cabinet.

Scientific Games’ future pipeline of slot games includes Seinfeld and James Bond themed games. Per Variety, the company expects to showcase the James Bond-themed slot games at the Global Gaming Expo in Las Vegasto be held from Oct 3 to Oct 5.

However, increasing investments for product development and strong competition are anticipated to weigh on margins.

Zacks Rank & Stocks to Consider

Currently, Scientific Games carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader technology sector include Applied Materials (AMAT - Free Report) , Activision Blizzard (ATVI - Free Report) and Applied Optoelectronics (AAOI - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Applied Materials, Applied Optoelectronics and Activision is currently projected to be 17.1%, 17.5% and 13.6%, respectively.

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