This article presents an overview of the 5 Best Gambling Stocks to Buy Now. For a detailed overview of such stocks, read our article, 19 Best Gambling Stocks to Buy Now.
5. MGM Resorts International (NYSE:MGM)
Number of Hedge Fund Investors: 45
In December 2023, UBS published its list of its high conviction picks from the MSCI All Country World Index (NASDAQ:ACWI). MGM Resorts International (NYSE:MGM) made it to the list. Here is what UBS analyst Rudolf Leemann said about these stocks:
“After dipping more than 10% between August and October, global equities strongly rebounded in November amid hopes central banks will pivot to a more dovish stance. Lower market rates and resilient earnings are likely to support the asset class going forward, but a lot of optimism seems to already be priced in and macroeconomic risks are more skewed to the downside.”
Longleaf Partners Fund stated the following regarding MGM Resorts International (NYSE:MGM) in its fourth quarter 2023 investor letter:
“MGM Resorts International (NYSE:MGM) & Hyatt – Hospitality companies MGM Resorts and Hyatt were both strong performers in the fourth quarter and for the year, outperforming expectations that the post-COVID travel rebound would ease in 2023. Casino and online gaming company MGM saw double-digit revenue growth and strong 2023 bookings in Las Vegas in the first half, which moderated in the second half but remained solid. A cybersecurity attack negatively impacted 3Q results, but MGM does not expect the $100 million hit to have a material effect on its financial condition and operational results for the year. MGM bought back discounted shares at a 15% annualized rate and authorized another $2 billion buyback in 4Q, which represents another 15% of the company.”
4. Wynn Resorts, Limited (NASDAQ:WYNN)
Number of Hedge Fund Investors: 46
In December 2023, Goldman Sachs published a list of growth stocks for those who are “wary of” valuations. Wynn Resorts, Limited (NASDAQ:WYNN) was part of the list. Goldman Sachs said stocks in this list have high growth but they trade “at a reasonable price.”
Baron Real Estate Fund stated the following regarding Wynn Resorts, Limited (NASDAQ:WYNN) in its fourth quarter 2023 investor letter:
“The shares of Wynn Resorts, Limited (NASDAQ:WYNN), an owner and operator of hotels and casino resorts, declined modestly in the most recent quarter, in part due to concerns about economic weakness in China.
We remain optimistic about the multi-year prospects for the company. We believe the ongoing re-emergence of business activity in Macau will drive additional shareholder value. If cash flow returns to the level achieved in 2019 prior to COVID-19, we believe Wynn’s shares will increase 30% to 50% higher than where they have recently traded.
We believe additional drivers for future value creation beyond a re-emergence in Macau business activity include: (i) our expectation for long-term growth opportunities in the company’s U.S.-centric markets of Las Vegas and Boston, including an expansion of Wynn’s Encore Boston Harbor resort; (ii) Wynn’s plans to develop an integrated resort in the United Arab Emirates with 1,500 hotel rooms and a casino that is similar in size to that of Encore Boston Harbor; (iii) opportunities to improve cash-flow margins by rightsizing labor and achieving lower staff costs in Macau; (iv) the possibility that Wynn is granted a New York casino license; and (v) an expansion in the company’s valuation multiple to levels achieved prior to the pandemic.”
3. Las Vegas Sands Corp (NYSE:LVS)
Number of Hedge Fund Investors: 48
Las Vegas Sands Corp (NYSE:LVS) last month posted fourth quarter results. Adjusted EPS in the quarter came in at $0.57, missing estimates by $0.04. Revenue jumped 160.7% year over year to $2.92 billion, surpassing estimates by $40 million.
A total of 48 hedge funds in Insider Monkey’s database of 933 funds had stakes in Las Vegas Sands Corp (NYSE:LVS).
2. DraftKings Inc. (NASDAQ:DKNG)
Number of Hedge Fund Investors: 55
DraftKings Inc. (NASDAQ:DKNG) is one of the most popular gambling stocks among hedge funds and retail investors. The stock has gained about 146% over the past one year.
As of the end of the fourth quarter of 2023, 55 hedge funds out of the 933 funds in Insider Monkey’s database had stakes in DraftKings Inc. (NASDAQ:DKNG).
In January, BMO started covering DraftKings Inc. (NASDAQ:DKNG) with an Outperform rating.
1. Caesars Entertainment Inc (NASDAQ:CZR)
Number of Hedge Fund Investors: 65
Caesars Entertainment Inc (NASDAQ:CZR) ranks first in our list of the best gambling stocks to buy now. In January, JMP started covering the stock with a Market Outperform rating. JMP sees strong activity in the brick and mortar casino industry. JMP’s analyst Jordan Bender said he’s impressed with Caesars Entertainment Inc’s (NASDAQ:CZR) “rollup” strategy that has resulted in a 32X revenue growth.
Out of the 933 hedge funds tracked by Insider Monkey, 65 hedge funds had stakes in Caesars Entertainment Inc (NASDAQ:CZR).
Baron Real Estate Fund stated the following regarding Caesars Entertainment, Inc. (NASDAQ:CZR) in its fourth quarter 2023 investor letter:
“In the most recent quarter, we acquired additional shares in Caesars Entertainment, Inc. (NASDAQ:CZR), the largest casino-entertainment company in the U.S. and one of the world’s most diversified casino-entertainment providers. We are big fans of CEO Tom Reeg and remain optimistic about the long-term prospects for the company.
The company operates primarily under the Caesars, Harrah’s, Horseshoe, and Eldorado brand names. The company generates approximately 50% of its cash flow from Las Vegas and 50% from regional destination markets. The company owns approximately half of its real estate and leases the other half from gaming REIT companies – Gaming and Leisure Properties, Inc. and VICI Properties Inc…” (Click here to read the full article)
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