13 Best Vacation Stocks to Buy Now

11) Red Rock Resorts, Inc. (NASDAQ:RRR)

Number of Hedge Fund Holders: 17

Red Rock Resorts, Inc. (NASDAQ:RRR), along with its subsidiary, is a gaming, development, and management company. It develops strategically located casino and entertainment properties.

The company’s Durango casino should continue to add to its growth prospects. This casino continues to generate strong results which should enable Red Rock Resorts, Inc. (NASDAQ:RRR) to meet its expected 20% ROIC, pay down its debt, and return to its targeted leverage ratio of 3x by next year’s end.

Market experts opine that its new casino, together with strong market growth, should help the company generate high single-digit growth in EBITDA and double-digit FCF growth in upcoming years. With expectations of strong margins on revenues from its new resort, the company’s margins are expected to remain above the pre-COVID levels.

Red Rock Resorts, Inc. (NASDAQ:RRR) continues to eye expansion opportunities and remains confident in its long-term growth strategy, which is expected to be supported by its real estate bank and robust assets in the Las Vegas locals market. Its growth strategy revolves around doubling of portfolio size. While 55,000 new customers signed up at Durango (which indicates market growth), Durango 2.0 expansion should be revenue additive. Red Rock Resorts, Inc. (NASDAQ:RRR) should be able to capitalize on favorable demographic trends and sustain its healthy market position in the competitive Las Vegas gaming and hospitality industry.

Analysts at Susquehanna upped their price objective on the shares of Red Rock Resorts, Inc. (NASDAQ:RRR) from $63.00 to $70.00, giving it a “Positive” rating on 24^th July.

Diamond Hill Capital, an investment management company, released its second-quarter 2024 investor letter and mentioned Red Rock Resorts, Inc. (NASDAQ:RRR). Here is what the fund said:

“Among our bottom Q2 contributors were Red Rock Resorts, Inc. (NASDAQ:RRR) and Enovis Corporation. Red Rock Resorts, a casino operator controlling over half the Las Vegas locals market, is facing some concerns about the near-term competitive environment. However, we maintain our conviction in the business’s long-term underlying fundamentals and anticipate it will actually take market share.”