35.54 +0.08 (0.23%)
After hours: 7:03PM EDT
|Bid||35.60 x 800|
|Ask||35.75 x 1100|
|Day's Range||33.30 - 35.67|
|52 Week Range||6.02 - 70.74|
|Beta (5Y Monthly)||2.61|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 04, 2020 - Aug 10, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||43.91|
The Zacks Analyst Blog Highlights: MGM, Wynn Resorts, Las Vegas Sands and Eldorado Resorts
Eldorado Resorts, Inc. (NASDAQ: ERI) ("Eldorado," "ERI," or "the Company") announced that it will resume operations at Isle of Capri Casino Hotel Lula, Lady Luck Casino Vicksburg and Tropicana Casino Greenville at 10:00 AM CDT today, Thursday, May 21, 2020.
Wall Street seems to think better days lie ahead for these casino operators; Red Rock Resorts' earnings call suggests that may be true.
Despite a tough first quarter, casino operators continue to move higher on expectations for a brighter future.
Casino giant Caesars’ mountains of debt raises uncertainty about its pending merger with Eldorado (ERI) amid the pandemic, says Dan Wasiolek, senior equity analyst at Morningstar.
As of 11:45 a.m. EDT, shares of mountain skiing specialist Vail Resorts (NYSE: MTN) are climbing 10.8%, hotelier Marriott International (NASDAQ: MAR) is up 13.8%, and casino operator Eldorado Resorts (NASDAQ: ERI) is doing best of all -- gaining 19.5%. This is a slow start -- but at least a start -- to reopening Eldorado Resorts.
Eldorado Resorts Inc. shares soared 19% Monday, after the Reno, Nevada-based casino operator said it would resume operations at three Louisiana sites. The company said its casinos Isle of Capri Lake Charles, Belle of Baton Rouge and Eldorado Shreveport would all reopen at noon central time. The company is complying with state regulations that limit gaming positions to 50% of prior levels and keep the number of people gambling at each facility to 25% of maximum allowable fire code levels. The company said its workers will wear face masks, and it will encourage guests to do the same. The company is enforcing social distancing, frequent hand washing and is upgrading its cleaning and sanitizing practices. Shares have fallen 54% in the year to date, while the S&P 500 has fallen 9%.
Concerns over the coronavirus pandemic continues to hurt the gambling stocks. Moreover, Las Vegas Sands (LVS) abandons its pursuit of Integrated Resort (IR) development in Japan.
Eldorado Resorts, Inc. (NASDAQ: ERI) ("Eldorado," "ERI," or "the Company") announced that it will resume operations at Isle of Capri Lake Charles, Belle of Baton Rouge and Eldorado Shreveport at 12:00 PM CT today, Monday, May 18, 2020.
Nomura analyst Harry Curtis maintained a Hold rating on Eldorado Resorts (NASDAQ:ERI) on Tuesday, setting a price target of $12.5, which is approximately 39.38% below the present share price of $20.62.
What happened Shares of Eldorado Resorts (NASDAQ: ERI) jumped 11% in morning trading Tuesday. The upward move comes despite the company's report the day before that first-quarter revenue tumbled 26% while Caesars Entertainment (NASDAQ: CZR), which Eldorado will be acquiring for $17 billion, saw a 14% drop.
Eldorado Resorts (ERI) delivered earnings and revenue surprises of 22.22% and -14.66%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?
Eldorado Resorts, Inc. (NASDAQ: ERI) ("Eldorado," "ERI," or "the Company") today reported operating results for the first quarter ended March 31, 2020.
Some investors might look past Penn National Gaming (NASDAQ:PENN) at this point. After a post-earnings pop Thursday, PENN stock now has rallied nearly 400% from March lows. Meanwhile, near-term pressure from the novel coronavirus on the gaming industry seems likely to be intense.Source: Casimiro PT / Shutterstock.com From a long-term perspective, however, I believe that would be a mistake. I've recommended Penn National since it traded below $10 at the beginning of last month. At $18, I still believe the stock is a winner.After all, we're seeing the country, thankfully, begin the process of returning to normalcy. At some point, that will include the casino business.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMeanwhile, Penn has a huge opportunity in sports betting and online gambling. And the same heavily leveraged balance sheet that helped drive a 90% decline in a matter of weeks in March can amplify upside going forward.Certainly, to some extent, the easy money has been made. Penn National isn't going to gain another 384% over the next seven-plus weeks. But there's still a path for the stock to return to, and potentially beyond, highs near $40 reached early this year. * 10 Key Stocks to Watch Over the Next Few Months Put another way, PENN stock has more upside left. Brick-and-Mortar StrugglesUnsurprisingly, brick-and-mortar casino operators have been absolutely hammered since the coronavirus began to spread.Penn's stock has nearly quintupled from the lows, but it is down 29% year-to-date and over 50% from its February highs. Eldorado Resorts (NASDAQ:ERI) has fared far worse, losing two-thirds of its value in 2020. Las Vegas Sands (NYSE:LVS) and Wynn Resorts (NASDAQ:WYNN), which have substantial operations in the Chinese enclave of Macau, are off 32% and 43%, respectively.The weakness makes some sense. There's going to be a mid-term impact on the industry. Re-opening plans, for instance, include reduced seats at blackjack tables and fewer slot machines on the gaming floor.Even with those restrictions, many customers won't be comfortable setting foot in casinos for some time to come.Balance sheets amplify that pressure. Penn National closed its first quarter with $2.17 billion in debt net of cash. It pays another $900 million annually in rent to real estate investment trusts, primarily Gaming & Leisure Properties (NASDAQ:GLPI). Penn spun off GLPI back in 2013.Put another way, the 90% decline in PENN stock didn't reflect the market's opinion that the business was worth 90% less. Only the equity. With over $2 billion in net debt, and lease commitments of nearly $9 billion on the balance sheet, the loss of about $2.5 billion in market capitalization from the highs perhaps makes some sense. Sports Betting and iGamingBut Penn isn't just a brick-and-mortar operator anymore. The company is building out its online gambling capabilities in Pennsylvania. Per this week's first-quarter release, the company has added 40,000 customers in that state with reasonably modest marketing spend.And, of course, earlier this year Penn acquired a 36% stake in Barstool Sports. PENN stock soared on that news, as it gave the company a hugely popular brand for its sports betting operations.Investors are enormously optimistic about those businesses at the moment. DraftKings (NASDAQ:DKNG) has more than doubled so far this year. It has a market capitalization nearing $9 billion.GAN Ltd (NASDAQ:GAN) just listed in the U.S. -- and the stock has rallied to $13.50 from an initial public offering price of $8.50. Meanwhile, Flutter Entertainment (OTCMKTS:PDYPY), which owns FanDuel, now is roughly flat year to date.The market is seeing U.S. sports betting, in particular, as a huge opportunity. And legalization may expand more quickly as state governments look to raise revenue. Certainly, in other stocks, investors are buying that thesis. They will likely do the same with PENN stock as well. Muddling ThroughThere are risks. But the fear in March that Penn wouldn't make it through this crisis now seems unfounded.Penn said in the Q1 release that it finished March with $731 million in cash. The average cash burn rate with casinos closed is about $83 million per month.Penn can get to the end of the year even with casinos closed, but some are preparing to reopen. Meanwhile, GLPI is incentivized to keep Penn afloat. Its chief executive officer, Peter Carlino, is part of the family that founded Penn National. Carlino and family trusts still own 4.5% of PENN stock.GLPI already made a deal with Penn to acquire the Tropicana Las Vegas. If need be, it can make more deals to provide cash to Penn or allow the operator to defer rent. The balance sheet is heavy, but fears of near-term bankruptcy fortunately seem minimal. The Long-Term Case for PENN StockThat leaves a solid long-term case. Penn has real drivers in iGaming and sports betting. Brick-and-mortar operations will return to normalcy at some point. The combination suggests at some point that Penn's stock can retake its February highs.With the stock at $18, that still suggests significant upside. Even if it takes a full five years, PENN stock would return about 17% a year. That's a solid return. If the company is a big winner in sports betting, the returns can be even bigger.The balance sheet that pressured the stock on the way down can amplify the gains on the way back up. Indeed, it has done so already. And while the absolute amount of debt and leases is a concern, Penn has plenty of flexibility.The country is going to get back to normal. So will Penn. And as that happens, the bull case that investors loved in February will come back. Over time, the same will be true for the price of Penn's stock.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post The Rally In Penn National Stock Isn't Over Yet appeared first on InvestorPlace.
Eldorado's (ERI) first-quarter 2020 results are likely to reflect a rise in sportsbook venues and solid sports betting market. However, coronavirus-induced shutdowns are a bother.
KlaymanToskes ("KT"), www.klaymantoskes.com, announced today that it is investigating damages sustained by current and former employees and investors of Eldorado Resorts (NASDAQ:ERI) ("Eldorado") who held large, unhedged concentrated positions in Eldorado stock and/or received margin calls resulting in the forced sale of stock. The recent losses were the result of unsuitable advice during the Coronavirus ("COVID-19") pandemic. The investigation focuses on full-service brokerage firms’ negligence and failure to supervise the management of concentrated, leveraged positions in Eldorado stock.
BJ's Wholesale Club, Polaris Industries, Abbott Laboratories, Eldorado Resorts and Apple highlighted as Zacks Bull and Bear of the Day
We have highlighted three stocks will flourish when the economy reopens. Notably, an increasing number of states are expected to reopen their economies in the first two weeks of May.
Shares of casino giant Caesars Entertainment (NASDAQ: CZR) jumped 42.9% in April, according to data provided by S&P Global Market Intelligence, after investors started to think its merger with Eldorado Resorts (NASDAQ: ERI) seemed more likely. As April wore on, the market got a little more bullish as Caesars and Eldorado inched closer to their merger. Asset sales that were part of the agreement continue to move forward, with Caesars selling Bally's Atlantic City to Twin River Worldwide Holdings for $25 million in cash.