In this article, we discuss the 5 best gambling stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to 15 Best Gambling Stocks to Buy Now.
5. DraftKings Inc. (NASDAQ:DKNG)
Number of Hedge Fund Holders: 43
DraftKings Inc. (NASDAQ:DKNG) is a sport betting operator, the company operates primarily in designing online fantasy sports software. DraftKings Inc. (NASDAQ:DKNG) ranks 5th on our list of the best gambling stocks to buy now.
Earlier this year, DraftKings Inc. (NASDAQ:DKNG) purchased sports betting content creator Vegas Sports Infromation Network, Inc. The acquisition enabled the expansion of content capabilities and extend audience reach.
This June, Morgan Stanley lowered DraftKings Inc.’s (NASDAQ:DKNG) price target from $63 to $58 and maintained an Overweight rating. Analyst Thomas Allen mentioned that the stock is attractive for long-term growth.
In the first quarter of 2021, DraftKings Inc.’s (NASDAQ:DKNG) revenue was up 253% year over year to $312 million Shares of DraftKing has also gained 25% over the last twelve months.
By the end of the first quarter of 2021, 43 hedge funds out of the 866 tracked by Insider Monkey held stakes in DraftKings Inc.’s (NASDAQ:DKNG) worth roughly $966 million.
Alger mentioned DraftKings Inc.’s (NASDAQ:DKNG) in its Q1 2021 investor letter:
“DraftKings Inc. was among the top contributors to performance. DraftKings is an online gaming operator. Its legacy Daily Fantasy Sports (DFS) allows users to virtually draft teams of players from professional sports leagues and potentially earn a payout based on how athletes perform. DraftKings Online Sports Betting (OSB) involves the company taking wagers or bets from customers on sporting events. Draft Kings’ third offering, Online Casino (iGaming), involves customers betting real money when playing casino games like slots and blackjack online. DFS is legal across most states, while approximately 25% of the population has access to OSB and approximately 10% has access to iGaming.
DraftKings recently hosted a bullish analyst day during which it increased its total addressable market estimate to approximately $65 billion if OSB and iGaming become legal in all states. At the same time, it raised its long-term revenue estimate to $5.4 billion and earnings before interest, taxes, depreciation and amortization to $1.78, an approximately 40% increase for both. It also discussed very strong customer retention. We believe DraftKings continues to be a great executor of its business strategy and it beat consensus revenues by nearly 40% for its most recent quarter. Online gaming is a very exciting market, and the monthly state numbers show that iGaming and OSB revenues/wagers continue to be very robust. Additionally,
DraftKings’ market share is strong with OSB and iGaming representing approximately 30%and 20%, respectively, of their markets. The potential for Canada and various U.S. states such as New York, Connecticut and Ohio to legalize sports betting
over the coming months could result in a multi-billion dollar revenue market.”
4. Wynn Resorts, Limited (NASDAQ:WYNN)
Number of Hedge Fund Holders: 49
Wynn Resorts, Limited (NASDAQ:WYNN) is a developer and owner of top-of-the-line hotels and casinos worldwide, including Wynn Las Vegas, Encore Boston Harbor, Wynn Macau, and Wynn Palace. Wynn Resorts, Limited ranks 4th on our list of the best gambling stocks to buy now.
In May, Wynn Resorts, Limited (NASDAQ:WYNN) completed its is merging with Austerlitz Acquisition Corporation. The merge will allow greater potential for the company and seize a larger audience from North America.
This May, Morgan Stanley raised the firm’s price target to $145 from $140 and kept its Overweight rating on Wynn Resorts, Limited (NASDAQ:WYNN) shares. Morgan Staley analyst Thomas Allen mentioned that the company’s merging with the acquisition company will allow the company to be more competitive in the market.
In the first quarter of 2021, Wynn Resorts, Limited (NASDAQ:WYNN) had an EPS of $2.41, beating estimates by $1.98. The company’s operating revenue was $725.8 million, a 23% decrease from the same period of 2020. However, Wynn Resorts, Limited (NASDAQ:WYNN) has gained 27% in the past year.
By the end of the first quarter of 2021, 49 hedge funds out of the 866 tracked by Insider Monkey held stakes in Wynn Resorts, Limited (NASDAQ:WYNN) worth roughly $1.07 billion.
3. MGM Resorts International (NYSE:MGM)
Number of Hedge Fund Holders: 57
MGM Resorts International (NYSE:MGM) is an American hospitality and entertainment company. The company operates in various areas worldwide such as Las Vegas, Massachusetts, New Jersey, Maryland, and more. MGM ranks 3rd on our list of the best gambling stocks to buy now.
This June, JPMorgan kept an Overweight rating on MGM Resorts International (NYSE:MGM) and raised the price target to $52 from $47. Analyst Joseph Greff made optimistic comments with the “multiple catalysts ahead” throughout the football season.
In the first quarter of 2021, MGM Resorts International (NYSE:MGM) had an EPS of $0.68, lower than consensus estimates of $0.85. while its revenue was $1.6 billion, up from the previous quarter of $1.5 billion. MGM Resorts International (NYSE:MGM) has gained about 122% in the past 12 months and 24% year to date as well.
By the end of the first quarter of 2021, 57 hedge funds out of the 866 tracked by Insider Monkey held stakes in MGM Resorts International (NYSE:MGM) worth roughly $2.71 billion.
Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, mentioned MGM Resorts International (NYSE:MGM) in its Q1 2021 investor letter:
“MGM (21%, 1.44%), the casino and online gaming company, also contributed to the Fund’s strong returns. MGM’s Las Vegas properties performed particularly well during the fourth quarter, with October marking the best month since pre-COVID February, positive quarterly EBITDA and strong 2021 bookings. MGM’s online gaming and sportsbetting app, BetMGM, is one of the leaders in US online gaming, with a better market share in the more profitable iGaming than in the higher profile but lower margin sports gaming. MGM has demonstrated high conversion rates of its hotel guests and we believe that, with Barry Diller’s help, they will build a competitive long-term advantage with lower customer acquisition costs. MGM’s Macau subsidiary, MGM China, also appreciated as the Macau market partially reopened. We believe there is significant additional upside for the Macau business over the medium-to-long term.”
2. Las Vegas Sands Corp. (NYSE:LVS)
Number of Hedge Fund Holders: 62
Las Vegas Sands Corp. (NYSE:LVS) is an American casino and resorts operator. The company also owns various restaurants and clubs, art and science museums, and convention and exhibition facilities. The company ranks 2nd on our list of the best gambling stocks to buy now.
Earlier this year, the company sold two of its solely-owned Nevada properties for $6.25 billion. The decision on selling the properties will allow Las Vegas Sands Corp. (NYSE:LVS) to focus on growing markets in Asia.
This April, Truist analyst Barry Jonas kept his Hold rating on Las Vegas Sands Corp. (NYSE:LVS) shares while also raising his price target from $43 to $38. Jonas made positive comments on the company’s strong earnings and mentioned a positive outlook with the vaccine rollout.
In the first quarter of 2021, Las Vegas Sands Corp. (NYSE:LVS) had an EPS of $0.68, short on estimates of $0.85. The company’s net revenue decreased 15.6% or $1.20 billion from the previous quarter.
By the end of the first quarter of 2021, 62 hedge funds out of the 866 tracked by Insider Monkey held stakes in Las Vegas Sands Corp. (NYSE:LVS) worth roughly $2.44 billion.
1. Caesars Entertainment, Inc. (NASDAQ:CZR)
Number of Hedge Fund Holders: 76
Caesars Entertainment, Inc. (NASDAQ:CZR) is an American hotel and casino that operates over 50 properties including Bally’s Las Vegas, Flamingo Las Vegas, Rio All-Suites Hotel and Casino, and Harrah’s Las Vegas among others. The company is the best gambling stock to buy now.
This June, JPMorgan kept its Overweight rating on Caesars Entertainment, Inc. (NASDAQ:CZR) shares, while raising its price target on the stock from $129 to $120. Analyst Joseph Greff commented on the stock and mentioned that with positive trends leading in Q2 profit beats and second-half projections increasing into the football season, there are “many triggers ahead.”
In the first quarter of 2021, Caesars Entertainment, Inc. (NASDAQ:CZR) had an EPS of $2.03, beating estimates by $1.80. The company’s net revenue was $1.7 billion, up 259.2% on a GAAP basis compared to the prior-year period. Caesars Entertainment, Inc. (NASDAQ:CZR) has gained 131% in the past 12 months and 27% year to date.
By the end of the first quarter of 2021, 76 hedge funds out of the 866 tracked by Insider Monkey held stakes in Caesars Entertainment, Inc. (NASDAQ:CZR) worth roughly $1.52 billion.
You can also take a peek at Top 10 Best Sin Stocks to Buy Now and 15 Best Jim Cramer Stocks to Buy Now
