Does Red Rock Resorts (RRR) Have a Strong Future Growth Outlook?
Diamond Hill Capital, an investment management company, released its “Small Cap Fund” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. During Q4 2023, the strategy returned 15.49% compared to 14.03% for the Russell 2000 Index. The relative outperformance in Q4 came from the strong performance of Financials and consumer discretionary holdings while industrials and healthcare holdings detracted. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Diamond Hill Small Cap Fund featured stocks such as Red Rock Resorts, Inc. (NASDAQ:RRR) in the Q4 2023 investor letter. Headquartered in Las Vegas, Nevada, Red Rock Resorts, Inc. (NASDAQ:RRR) develops and operates casino and entertainment properties. On February 5, 2024, Red Rock Resorts, Inc. (NASDAQ:RRR) stock closed at $54.06 per share. One-month return of Red Rock Resorts, Inc. (NASDAQ:RRR) was 4.28%, and its shares gained 14.97% of their value over the last 52 weeks. Red Rock Resorts, Inc. (NASDAQ:RRR) has a market capitalization of $3.157 billion.
Diamond Hill Small Cap Fund stated the following regarding Red Rock Resorts, Inc. (NASDAQ:RRR) in its fourth quarter 2023 investor letter:
"On an individual holdings’ basis, top contributors to return in Q4 included Red Rock Resorts, Inc. (NASDAQ:RRR) as well as financials holdings Live Oak Bancshares and Bank OZK. Red Rock Resorts, a casino operator controlling over half the Las Vegas local market, successfully opened its Durango Casino and Resort in December and is already discussing the second phase of the new resort’s development. This addition to Red Rock’s extensive portfolio of properties further enables it to capitalize on Las Vegas’s economic growth as major sports franchises such as the Las Vegas Raiders, Golden Knights and (possibly in a few years) the A’s locate there. With solid underlying fundamentals, we maintain our conviction in the outlook for the company over the period ahead."
A luxurious resort hotel with a pool and beach in the backdrop.
Red Rock Resorts, Inc. (NASDAQ:RRR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Red Rock Resorts, Inc. (NASDAQ:RRR) at the end of third quarter which was 18 in the previous quarter.
We discussed Red Rock Resorts, Inc. (NASDAQ:RRR) in another article and shared Diamond Hill Small Cap Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
