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)
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 #1 (Strong Buy). The stock has also been one of the hottest gaming picks on Wall Street recently, surging more than 19% in the past three months and nearly 71% in the last year. Still, with new growth catalysts ahead, PENN could very well break higher.
2. Red Rock Resorts, Inc. (RRR)
Based in Las Vegas, Red Rock Resorts operates 22 casino and entertainment properties throughout the country. The company is also leader in the Native American gambling industry, managing such facilities in California and Michigan. In other words, RRR gives investors exposure to traditional gaming hubs and budding growth markets.
RRR is sporting a Zacks Rank #2 (Buy), as well as a “B” grade for Growth and an “A” grade for Momentum in our Style Scores system. Earnings growth is projected to hit a staggering 112% this year, and the stock has soared nearly 18% in the past three months. RRR could keep surging higher, as its EPS estimates have added 10% recently, signaling bullish analyst sentiment.
3. Boyd Gaming Corporation (BYD)
Also based in Vegas, Boyd Gaming is an owner and operator of 24 gaming properties in seven states. Investors will hope that these strategically-located facilities can position the company to capitalize on legalized sports gambling in the near future, and with the stock sporting a Zacks Rank #2 (Buy) right now, this stock could already be surging soon. Also, Boyd is expected to improve its EPS figures by 28% in 2018.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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Boyd Gaming Corporation (BYD) : Free Stock Analysis Report
Penn National Gaming, Inc. (PENN) : Free Stock Analysis Report
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