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The Zacks Analyst Blog Highlights: Scientific Games, Boyd Gaming, MGM Resorts International and International Game Technology

Zacks Equity Research

For Immediate Release

Chicago, IL – November 6, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Scientific Games Corp. SGMS, Boyd Gaming Corp. BYD, MGM Resorts International MGM and International Game Technology plc IGT.

Here are highlights from Tuesday’s Analyst Blog:

Sports Betting Market on the Cusp of a Boom: Stocks to Watch

The U.S. sports betting market is set to boom in the near future, with industry heavyweights vying to make the most of it. Panelists at the NYC Sports Betting Investor Summit on Nov 4 said that the U.S. sports betting market will reach a worth of almost $7 billion to $8 billion over the next five years.

The industry is growing by leaps and bounds ever since the U.S. Supreme Court opened up the gigantic sports betting market, helping Americans place $150 billion in illegal wagers on sports every year. Sports gambling won’t be regulated by the Federal Government anymore, instead the individual states will take charge.

Last October, the state of New Jersey handled more than a quarter billion dollars in bets, showing a 41% increase from the previous month. But, that's just half of the $528 million Nevada handled. Legal sports gambling, in fact, state-by-state is growing by the day. Mississippi, Delaware, West Virginia, New Mexico, Pennsylvania and Rhode Island are also leading the way. Governor of Massachusetts Charlie Baker, in the meantime, presented a proposal to legalize gambling on professional sports online and even at casinos in Massachusetts.

Nonetheless, investment giant Morgan Stanley predicts that the U.S. market will be able to generate nearly 7 billion in revenues by 2025, significantly up from $833 million this year. By the way, executives from MGM Resorts, Hard Rock and Mohegan Sun have issued similar projections, with revenues expected to come in between $6 billion and $8 billion within the next five years. To top it, research firm Eilers & Krejcik Gaming, which tracks sports betting regulations, confirmed that their figures are close to what has been predicted by these various organizations.

What’s more, some companies are acquiring others to build high-profile partnership to make the most of the fast-growing industry. For instance, the National Basketball Association recently announced a partnership with authorized sports betting operator DraftKings.

Thus, from casinos to sports clubs to gambling app makers, all are looking to enter the sports betting market to rake in a lot of moolah. Let us, thus, take a look at stocks that can provide outsized returns as U.S. legalizes sports betting —

Scientific Games

Scientific Games Corp. develops technology-based products and services, and related content for the gaming, lottery, and digital gaming industries. Scientific Games is looking forward to enter sports betting by providing the required infrastructure.

The company has a Zacks Rank #2 (Buy). The company’s expected earnings growth rate for the current quarter is a superb 114.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boyd Gaming

Boyd Gaming Corp.operates as a multi-jurisdictional gaming company. It operates through three segments: Las Vegas Locals, Downtown Las Vegas and Midwest & South. The company has been pursuing a number of acquisitions to make the most of the sports betting surge. Boyd partnered with MGM to share online and mobile gaming platforms.

Boyd Gaming, by the by, has managed some of the biggest sportsbooks in Sin City. It had opened two sportsbooks in its Mississippi venues and now plans to open four more at its venues in Iowa and Indiana. And now that sports betting are legal, Boyd is preparing to foray into other regional markets as well.

The company has a Zacks Rank #3 (Hold). The company’s expected earnings growth rate for the current quarter and year are a solid 40.6% and 29.3%, respectively.

MGM Resorts

MGM Resorts International owns and operates integrated casino, hotel, and entertainment resorts in the United States and Macau. MGM generates nearly $4 billion in revenues from Las Vegas.

Now, the company is looking to build a sports betting empire, much bigger than its casino operations. And the timing can't be better. Needless to say, MGM will promote its sports betting app.

The company has a Zacks Rank #3. The company’s expected earnings growth rate for the current and next quarter are an encouraging 64.3% and 200%, respectively.

International Game Technology

International Game Technology plc operates and provides technology products and services across lotteries, electronic gaming machines, sports betting, and interactive gaming markets.

IGT is a big firm with over 12,000 employees and manufactures more casino platforms than any other company. But, things started looking up for International Game Technology after it started branching out into sports betting. IGT has already handled $12 billion in sports betting, which makes it a safe bet for investors.

The company has a Zacks Rank #3. The company’s expected earnings growth rate for the current quarter and year are a promising 12.9% and 35.7%, respectively.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Click to get this free report MGM Resorts International (MGM) : Free Stock Analysis Report International Game Technology (IGT) : Free Stock Analysis Report Boyd Gaming Corporation (BYD) : Free Stock Analysis Report Scientific Games Corp (SGMS) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research