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 an interesting time to be buying gambling stocks, as continued Vegas strength, legalized sports gambling coming to the U.S., and an overall international interest in gaming has created some interesting buying opportunity.
Of course, no industries are without risk, and recently, some casino giants have been selling off as gambling data has hinted at a potential slowdown in Macau after an extended recovery in the world's top gaming hotspot.
Still, we can use Zacks’ proven stock-picking methods to find solid stocks in any industry. Check out these casino stocks today:
1. Penn National Gaming, Inc. (PENN - Free Report)
Penn National Gaming is an operator of a number of casino and gambling properties in North America, specifically located in smaller markets and non-Vegas gambling hotspots. Recently, analysts at Morgan Stanley called the Supreme Court gambling verdict as a “slight positive for regional gaming stocks” and named PENN as one that could benefit the most.
Penn National is also currently holding a Zacks Rank #2 (Buy). The stock has also been one of the hottest gaming picks on Wall Street recently, surging more than 11.5% in the past five trading days alone—and more than 66% in the last year. Still, with new growth catalysts ahead, PENN could very well break higher.
2. VICI Properties Inc. (VICI - Free Report)
VICI Properties is a REIT formed as a spin-off from Caesars Entertainment. The company owns and leases gaming property, and its portfolio now contains 22 gambling facilities throughout Nevada, New Jersey, Louisiana, and more. VICI also owns four golf courses.
VICI is a Zacks Rank #2 (Buy) with impressive growth and income properties. Because it’s a REIT, the company pays out a solid chunk of its profits as dividends, and its yield sits at 5.1% right now. Meanwhile, VICI’s expected long-term annual EPS growth rate sits at 6%.
3. Golden Entertainment, Inc. (GDEN - Free Report)
Golden Entertainment operates casinos, taverns, and slot routes. It is known for its budget options in gambling hotspots, such as its Arizona Charlie’s locations in Las Vegas. But Golden also operates luxury casinos like the Stratosphere on the Las Vegas Strip.
GDEN is only a Zacks Rank #3 (Hold), but the stock does sport an “A” grade for Growth in our Style Scores system. Earnings growth for the current fiscal year is expected to reach 162%, and that expansion is projected to reach another 129% next year—thanks to revenue growth of 72% and 14% in those periods.
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