In this article, we will discuss 5 best Las Vegas stocks to buy now. For a detailed analysis of these companies, you can directly go to 11 Best Las Vegas Stocks to Buy Now.
5. DraftKings Inc. (NASDAQ:DKNG)
No. of Hedge Fund Holders: 34
DraftKings Inc. (NASDAQ:DKNG) is a digital sports entertainment and gaming company. It is involved in offering users with daily fantasy sports (DFS), sports betting, and iGaming opportunities.
Churchill Downs Incorporated (NASDAQ:CHDN) and DraftKings Inc. (NASDAQ:DKNG) announced a multi-year agreement, bringing pari-mutuel wagering on horse racing to DraftKings Inc. (NASDAQ:DKNG).
DraftKings Inc. (NASDAQ:DKNG) saw strong revenue growth of 136% to $502 million in Q3 2022 against $213 million in Q3 2021. Effective customer engagement and strong product and technology enhancements supported the company’s revenue growth. The company raised its fiscal year 2022 revenue guidance to $2.16 billion to $2.19 billion from $2.08 billion to $2.18 billion announced previously. This updated 2022 revenue guidance range exhibits year-over-year growth of 67% – 69%.
Overall, 34 out of the 920 hedge funds tracked by Insider Monkey reported owning shares of DraftKings Inc. (NASDAQ:DKNG) at the end of the third quarter of 2022. In the preceding quarter, 27 elite hedge funds held stakes.
Morgan Stanley covered the shares of DraftKings Inc. (NASDAQ:DKNG) and reduced its target price on shares of the company from $28.00 to $20.00. They gave an “Overweight” rating on the stock on November 21.
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4. Boyd Gaming Corporation (NYSE:BYD)
No. of Hedge Fund Holders: 36
Boyd Gaming Corporation (NYSE:BYD) is a multi-jurisdictional gaming company, operational since 1975. With its headquarters in Las Vegas, the company operates 28 wholly-owned gaming properties in Nevada, Illinois, Kansas, Indiana, Iowa, Mississippi, Missouri, Louisiana, Ohio and Pennsylvania.
Boyd Gaming Corporation (NYSE:BYD) has closed acquisition of Pala Interactive LLC and its subsidiaries for net cash consideration of $170 million.
Boyd Gaming Corporation (NYSE:BYD) has posted its results for Q3 2022. It has seen strong performance in the said quarter as it achieved healthy EBITDAR. Results were supported by continued focus on core customers and sustained efficiencies. As of September 30, 2022, it had cash of $252.3 million, while total debt came at $2.91 billion.
Morgan Stanley covered Boyd Gaming Corporation (NYSE:BYD) on November 21. They gave an “Underweight” rating on the shares of the stock, with the price objective of $54.00.
According to Insider Monkey’s data, 36 hedge funds were long Boyd Gaming Corporation (NYSE:BYD) at the end of the third quarter of 2022. The stock has been ranked 4th on our list of 11 best Las Vegas stocks to buy now.
Here is what Baron Funds has to say about Boyd Gaming Corporation (NYSE:BYD) in their second quarter 2022 investor letter:
“Boyd Gaming Corporation 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.”
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3. Las Vegas Sands Corp. (NYSE:LVS)
No. of Hedge Fund Holders: 48
Las Vegas Sands Corp. (NYSE:LVS) operates fully integrated resorts, featuring casino, hotel, entertainment, F&B, retail, and convention center operations.
The stock ranks 3rd on our list of 11 best Las Vegas stocks to buy now.
Las Vegas Sands Corp. (NYSE:LVS) has released its results for Q3 2022. Despite travel restrictions impacting financial results in the third quarter of 2022, the company has seen further progress in Singapore’s recovery as Marina Bay Sands reached $343 million in adjusted property EBITDA. Its net revenue came in at $1.01 billion against $857 million in Q3 2021. The company expects recovery of travel and tourism spending across markets. Demand from customers who visit remains healthy.
Barclays initiated the coverage on Las Vegas Sands Corp. (NYSE:LVS) on December 15, and upped their price target on the shares of Las Vegas Sands Corp. (NYSE:LVS) from $43.00 to $57.00. They have an “Overweight” rating on the stock. The analyst expects to see healthy preference among consumers for experiences.
According to Insider Monkey’s proprietary database, 48 hedge funds were bullish on Las Vegas Sands Corp. (NYSE:LVS), as of the end of the third quarter.
Baron Funds, an investment management company, published its third quarter 2022 investor letter. Here is what the fund said about Las Vegas Sands Corp. (NYSE:LVS):
“The shares of Las Vegas Sands Corp. (NYSE:LVS) performed well in the most recent quarter in part due to the decision by China’s central government to ease the visa policy for Macau, which should result in increased travel into Macau for the first time since the outbreak of COVID-19.
Sands is 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. We anticipate that management may begin to return capital to shareholders through dividends and share buybacks as Singapore and Macau recover.
The shares are 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.”
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2. MGM Resorts International (NYSE:MGM)
No. of Hedge Fund Holders: 53
MGM Resorts International (NYSE:MGM) is a Delaware corporation which owns and operates integrated casino, hotel, and entertainment resorts across the US and in Macau.
MGM Resorts International (NYSE:MGM) announced that it has closed on the sale of operations of The Mirage Hotel & Casino to Hard Rock International for $1.075 billion in cash.
Consolidated net revenues of MGM Resorts International (NYSE:MGM) came at $3.4 billion in Q3 2022 against $2.7 billion in Q3 2021, exhibiting 26% year-over-year growth.
Growth in Q3 2022 stemmed from inclusion of the operating results of The Cosmopolitan of Las Vegas and Aria and Vdara upon their acquisition in May 2022 and September 2021, respectively. Results saw year-over-year improvement as a result of higher business volume and travel activity principally at the Las Vegas Strip Resorts. The company expects healthy outlook, with continued progress in its operations at BetMGM and development initiatives in New York and Japan. The company sees strong bookings into 2023 in its domestic operations.
According to Insider Monkey’s third quarter database, 53 hedge funds were long MGM Resorts International (NYSE:MGM), with collective stakes worth $1.10 billion.
Baron Funds, an investment management company, released its investor letter for Q3 2022, and mentioned MGM Resorts International (NYSE:MGM). Here is what the fund said:
“MGM Resorts International (NYSE:MGM) is a leading global casino and entertainment company with 29 unique hotels and casinos including some of the most recognizable resort brands such as Bellagio, MGM Grand, ARIA, and Park MGM. At its recent price of only $30 per share, we believe MGM’s valuation is compelling at only 6 times 2023 estimated cash flow.”
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1. Caesars Entertainment, Inc. (NASDAQ:CZR)
No. of Hedge Fund Holders: 56
Caesars Entertainment, Inc. (NASDAQ:CZR) is a geographically-diversified gaming and hospitality company. Its primary source of revenue is gaming operations.
In Q3 2022, Caesars Entertainment, Inc. (NASDAQ:CZR) saw strong revenue growth and smaller-than-expected EBITDA loss due to improved operating efficiencies. Its GAAP net revenues came at $2.9 billion versus $2.7 billion in Q3 2021.
As of September 30, 2022, Caesars Entertainment, Inc. (NASDAQ:CZR) had $13.3 billion in aggregate principal amount of debt outstanding. The company’s total cash and cash equivalents came at $944 million, excluding restricted cash of $297 million.
Director Michael E. Pegram bought 25,000 shares of the firm’s stock on November 4 at an average cost of $44.74 per share, totalling $1,118,500.00. Post this transaction, the director now owns 96,697 shares, worth approximately $4,326,223.78.
Analysts at Wells Fargo & Company initiated a coverage on the shares of Caesars Entertainment, Inc. (NASDAQ:CZR) and they increased their target price from $64.00 to $72.00. They gave an “Overweight” rating on November 2.
Overall, 56 out of the 920 hedge funds tracked by Insider Monkey reported owning shares of the company at the end of Q3.
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