Harvard University Stock Portfolio: Top 10 Stock Picks

4. Light & Wonder, Inc. (NASDAQ:LNW)

Harvard Management Company’s Stake: $130.8 million

Light & Wonder, Inc. (NASDAQ:LNW) is a global, cross-platform gaming company focused on content and digital markets. Its operations are divided into Gaming, SciPlay, and iGaming segments. The company offers its gaming products and services to commercial casinos, Native American casinos, and wide-area gaming operators, including licensed betting offices (LBOs) and bingo operators in the UK and Europe.

For the third quarter, Light & Wonder, Inc. (NASDAQ:LNW) reported earnings of $1.34 per share, surpassing analysts’ expectations of $1.16 per share. This marks a significant improvement from earnings of $0.81 per share in the same period last year, representing an earnings surprise of 15.52%. In the previous quarter, the company had also exceeded expectations, posting earnings of $1.42 per share, against an expected $1.04, resulting in a 36.54% surprise.

Earlier in October, B.Riley resumed coverage of Light & Wonder, Inc. (NASDAQ:LNW) with a Buy rating and raised its price target to $120. The firm highlighted the company’s market position, noting that its enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio is about 40% lower than its closest peer. Despite recent challenges, such as a stock price decline following a preliminary injunction related to its Dragon Train franchise, B.Riley views these developments as presenting an attractive entry point for investors.