Do You Believe in the Growth Prospects of Red Rock Resorts (RRR)?

Diamond Hill Capital, an investment management company, released its “Small Cap Fund” second-quarter 2024 investor letter. A copy of the same can be downloaded here. Equity markets reported mixed results in the second quarter of 2024. However, the broad market Russell 3000 Index and the large-cap-focused Russell 1000 Index advanced approximately 3%, most other market segments posted negative returns. Diamond Hill Small Cap Fund slightly trailed its benchmark, the Russell 2000 Index, in Q2 and returned -3.42% while the benchmark return was -3.28% during the same period. For more information on the fund’s top picks in 2024, please check its top five holdings.

Diamond Hill Small Cap Fund highlighted stocks like Red Rock Resorts, Inc. (NASDAQ:RRR) in the Q2 2024 investor letter. Headquartered in Las Vegas, Nevada, Red Rock Resorts, Inc. (NASDAQ:RRR) develops and operates casino and entertainment properties.  The one-month return of Red Rock Resorts, Inc. (NASDAQ:RRR) was -8.53%, and its shares gained 19.64% of their value over the last 52 weeks. On August 7, 2024, Red Rock Resorts, Inc. (NASDAQ:RRR) stock closed at $53.73 per share with a market capitalization of $5.511 billion.

Diamond Hill Small Cap Fund stated the following regarding Red Rock Resorts, Inc. (NASDAQ:RRR) in its Q2 2024 investor letter:

“Among our bottom Q2 contributors were Red Rock Resorts, Inc. (NASDAQ:RRR) and Enovis Corporation. Red Rock Resorts, a casino operator controlling over half the Las Vegas locals market, is facing some concerns about the near-term competitive environment. However, we maintain our conviction in the business’s long-term underlying fundamentals and anticipate it will actually take market share.”

A picturesque sunset view of the Graton Resort & Casino, with patrons gambling in the background.

Red Rock Resorts, Inc. (NASDAQ:RRR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Red Rock Resorts, Inc. (NASDAQ:RRR) at the end of the first quarter which was 15 in the previous quarter. While we acknowledge the potential of Red Rock Resorts, Inc. (NASDAQ:RRR) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Red Rock Resorts, Inc. (NASDAQ:RRR) and shared Diamond Hill Small Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.