In this article, we will discuss the 5 Best Gambling Stocks To Buy Now. If you want to read our analysis of the gambling industry, you can head on to the 16 Best Gambling Stocks To Buy Now.
5. International Game Technology PLC (NYSE:IGT)
Number of Hedge Fund Holders: 34
International Game Technology PLC (NYSE:IGT) is a diverse company having its headquarters in London, England, providing users with entertainment and gaming experiences ranging from lotteries and gaming machines to sports betting and digital gaming. International Game Technology PLC (NYSE:IGT) has operations in more than 100 countries worldwide.
On September 20, 2022, International Game Technology PLC (NYSE:IGT) signed a 15-year contract with Ontario Lottery and Gaming Corporation. Under the contract, International Game Technology PLC (NYSE:IGT) will provide its self-serving lottery terminals to the company. This will be the first time that lottery players in Ontario will have access to self-serving technology.
As per Insider Monkey database, 29 hedge funds remained bullish on International Game Technology PLC (NYSE:IGT) at the end of the third quarter.
Here is what Palm Harbour Capital has to say about International Game Technology PLC (NYSE:IGT) in its Q4 2021 investor letter:
The second largest contributor was International Game Technology, the ItalianAmerican lottery and slot machine company, which we introduced in our first quarter 2020 letter and which contributed 78 basis points to performance. Early in the quarter, IGT’s main competitor, the highly levered Scientific Games, entered into a definitive agreement to sell its lottery business to Brookfield Business Partners for total consideration of $6.1 billion in cash and contingent payout. At $471 million last twelve months EBITDA (admittedly COVID affected, excluding unallocated central costs), Scientific Games lottery business was sold at trailing 13.0x. Scientific Games exited the lottery business to optimize the portfolio and aggressively de-lever its balance sheet. We believe IGT’s lottery business to be much higher quality and certainly larger. If we were to use a similar metric for IGT, including all corporate costs but excluding Gaming and Digital and Betting, we would have around 90% upside. We are willing to bet the Gaming and fast growing Digital and Betting segments are worth something as well. It seems the sell-side willfully ignores this transaction and sticks with their 7-8x EV/EBITDA valuation.
The company reported third quarter earnings with sales up by 21% year on year, EBIT up by 144% and leverage down to 3.8x from 6.4x at year-end 2020. Total Adjusted EBITDA improved by 42% with margin gaining 618 basis points. Following the recovery, management reinstated the dividend of $0.20 per share… (Click here to see the full text)
4. Boyd Gaming Corporation (NYSE:BYD)
Number of Hedge Fund Holders: 36
Founded in 1975, Boyd Gaming Corporation (NYSE:BYD) is considered one of the biggest entertainment companies in the United States. The company operates 28 casino properties across 10 different states. It is also involved in operating online casino businesses.
On October 26, 2022, Joseph Stauff, an analyst at Susquehanna, increased his target price to $72 on the company’s stock. The analyst currently has a Positive rating on Boyd Gaming Corporation (NYSE:BYD) and believes that the company is currently trading at an appealing valuation given its ability to generate stable cash flow.
As per Insider’s Monkey database, 36 hedge funds owned stakes in the company at the end of the third quarter.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Boyd Gaming Corporation (NYSE:BYD) was one of them. Here is what the fund said:
Boyd Gaming Corporation (NYSE:BYD) is one of the largest and most successful casino entertainment companies in the U.S. The company owns and operates 28 casino gaming properties in 10 states with a large presence in Las Vegas. Business conditions have been strong, yet the shares are valued at only 6 times 2022 estimated cash flow versus a long-term average of more than 9 times cash flow. The company maintains a strong and liquid balance sheet. Insiders own approximately 27% of the company. We believe Boyd is a compelling acquisition target.
3. Las Vegas Sands Corp. (NYSE:LVS)
Number of Hedge Fund Holders: 48
Las Vegas Sands Corp. (NYSE:LVS) is a developer and operator of high-end integrated resorts featuring luxury gambling, accommodations, retail, and meeting space for its customers. The company started from a single property in 1990 in Las Vegas and has now made its footprint in Macao and Singapore.
On October 20, 2022, George Choi, an analyst at Citi, raised his target price on Las Vegas Sands Corp. (NYSE:LVS) to $62. The analyst currently keeps a Buy rating on the company’s stock and, in a research note, stated that Las Vegas Sands Corp. (NYSE:LVS) is his “Global Top Pick,” given the company’s bright prospects in Singapore.
48 hedge funds are currently bullish on Las Vegas Sands Corp. (NYSE:LVS) as per Insider’s Monkey database.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Las Vegas Sands Corp. (NYSE:LVS) was one of them. Here is what the fund said:
Certain travel-related businesses remain cyclically depressed not secularly challenged and should rebound as economic strength re-emerges. For example, the business operations of Macau-centric casino and gaming companies such as Las Vegas Sands Corporation (NYSE:LVS) have yet to recover due to the ongoing COVID-19 challenges in China. We expect business to rebound sharply when economic growth recovers just as it did in Las Vegas. Las Vegas Sands Corporationis a global leader in the development and operation of luxury casino resorts in Macau and Singapore, and it maintains a liquid and investment grade balance sheet. It is currently valued at a significant discount to our assessment of replacement cost, and the company’s Macau operations are valued at only 7 times estimated cash flow.
2. MGM Resorts International (NYSE:MGM)
Number of Hedge Fund Holders: 53
MGM Resorts International (NYSE:MGM) is a holding company that engages in the ownership and operations of casino resorts. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. The company provides online sports betting services to its customers through BetMGM.
On September 26, 2022, George Choi, an analyst at Citi, increased his target price on MGM Resorts International (NYSE:MGM) stock to $58.50. The analyst currently has a Buy rating on the company’s stock. The earlier-than-expected easing of Covid-related restrictions in Macau is a positive surprise, and the analyst now expects the stock to be re-rated by the market.
According to Insider’s Monkey database, 53 hedge funds held shares of the company at the end of the third quarter 2022.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and MGM Resorts International (NYSE:MGM) was one of them. Here is what the fund said:
MGM Resorts International (NYSE:MGM) is a leading global casino and entertainment company. At its recent price of only $30 per share, we believe MGM is valued at a significant discount to our reasonable $50 per share estimate of the sum-of-the-parts value of its business. Further, the company’s domestic operations are valued at a 18% free-cash-flow yield. Paul Salem, Chairman of the Board, recently acquired shares.
1. Caesars Entertainment, Inc. (NASDAQ:CZR)
Number of Hedge Fund Holders: 56
Caesars Entertainment, Inc. (NASDAQ:CZR) is one of the largest casino-based entertainment companies in the United States. Since starting its operations in 1973, it has grown through the development, expansion, and acquisition of resorts across the U.S. As of December 2021, the company owned, leased, and managed 52 domestic properties in 16 states.
On November 02, 2022, Daniel Politzer, an analyst at Wells Fargo, increased his price target on Caesars Entertainment, Inc. (NASDAQ:CZR) to $72 while keeping an Overweight rating on the company’s stock. The analyst believes that the higher-than-expected Q3 2022 results of the company reflect the strong nature of the operations of the company.
According to Insider’s Monkey database, 56 hedge funds had stakes in the company at the end of the September quarter.
In its Q4 2021 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and Caesars Entertainment, Inc. (NASDAQ:CZR) was one of them. Here is what the fund said:
Caesars Entertainment, Inc. (NASDAQ:CZR), a diversified casino-entertainment and resort company, underperformed in the period as its quarterly earnings update was viewed as disappointing by investors. The firm highlighted a number of one-time headwinds that ultimately weighed on margins, as well as some negative impacts brought on by the surge in COVID cases. Despite this, we believe that the sizeable overall margin improvements Caesars has realized coming out of the pandemic will ultimately prove sustainable in the long run.
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