7 Best Entertainment Stocks To Buy According to Analysts

4. Golden Entertainment, Inc. (NASDAQ:GDEN)

Average Upside Potential: 23.10%

Number of Hedge Fund Holders: 11

Golden Entertainment, Inc. (NASDAQ:GDEN) owns and operates a diversified entertainment platform, comprising a portfolio of gaming assets focused on casino and branded tavern operations. This portfolio includes eight casino properties in Nevada, and over 70 branded taverns targeting local patrons located primarily in the Las Vegas metropolitan area.

The company has focused casino and branded tavern operations in Nevada and is well-positioned to capitalize on Nevada’s long-term demand drivers. Nevada serves as the most attractive gaming market with promising conditions. Some of these include Clark County population growing 3.8x faster than total US, a rebound in Las Vegas visitation, and Nevada having the two largest gaming markets in the country. To focus on core operations in the Nevada market, the firm sold its Rocky Gap Casino Resort as well as the Distributed Gaming Operations in Montana and Nevada. In terms of gaming tax rates, Nevada is ideal as well.

Golden Entertainment, Inc. (NASDAQ:GDEN) reported second-quarter revenue of $167.3 million and adjusted EBITDA of $41.2 million, as compared to revenues of $286.7 million and adjusted EBITDA of $58.4 million in the prior-year period. The results were primarily impacted by the exclusion of the results for the already-sold Rocky Gap Casino Resort and distributed gaming operations in Montana and Nevada.

With focused operations in Nevada and opportunistic divestitures for an improved focus, Golden Entertainment, Inc. (NASDAQ:GDEN) is in a good place to benefit from the favorable conditions in the market.