In this article, we discuss the 5 largest gambling stocks of 2021. You can read our detailed analysis of the gambling and casino industry, go directly to see The 10 Largest Gambling Stocks of 2021.
5. Wynn Resorts, Limited (NASDAQ:WYNN)
Number of Hedge Fund Holders: 37
Wynn Resorts, Limited (NASDAQ:WYNN) is an American operator of high-end hotels and casinos. The company launched its online casino and sports betting app, WynnBET, which is available in six states in the U.S. Founded in 2002, Wynn Resorts, Limited (NASDAQ:WYNN) remains one of the largest gambling stocks of 2021.
Wynn Resorts, Limited (NASDAQ:WYNN) reported solid Q2 results, posting an EPS of -$1.12, beating the estimates by $0.46. The company’s revenue for the quarter grew significantly to $990.1 million, from $85.7 million during the same period last year. Recently, Morgan Stanley set a $107 price target on Wynn Resorts, Limited (NASDAQ:WYNN), with an Overweight rating on the shares.
At the end of Q2, 37 hedge funds tracked by Insider Monkey reported owning stakes in Wynn Resorts, Limited (NASDAQ:WYNN), compared with 49 in the previous quarter. The total value of these stakes is $712.4 million.
4. Penn National Gaming, Inc. (NASDAQ:PENN)
Number of Hedge Fund Holders: 40
Recently, Morgan Stanley initiated its coverage on Penn National Gaming, Inc. (NASDAQ:PENN) with an Equal Weight rating and an $85 price target, highlighting the company’s iGaming and sports betting segment. Penn National Gaming, Inc. (NASDAQ:PENN), an American casino company, operates over 44 casino facilities in the U.S., which makes it one of the largest gambling stocks of 2021.
At the end of Q2, 40 hedge funds in the Insider Monkey database reported owning stakes in Penn National Gaming, Inc. (NASDAQ:PENN), compared with 42 in the previous quarter. These stakes are valued at over $1.03 billion.
Carillon Tower Advisers mentioned Penn National Gaming, Inc. (NASDAQ:PENN) in its Q2 2021 investor letter. Here is what the firm has to say:
“Penn National Gaming is a diversified omnichannel provider of retail and online gaming, live racing, and sports betting entertainment. After a substantial run, Penn National Gaming sold off during the quarter, reflecting a profit taking in a number of sports and online gambling stocks. However, fundamentals are healthy in firm’s regional gaming markets and its sports betting initiatives remain strong.”
3. Las Vegas Sands Corp. (NYSE:LVS)
Number of Hedge Fund Holders: 48
Las Vegas Sands Corp. (NYSE:LVS) stands third on our list of the largest gambling stocks of 2021. On October 20, the company reported its Q3 results, with a 92.2% year-over-year growth in its revenue at $857 million. Casino revenues accounted for $533 million of the gross revenue, up from $281 million in the prior-year quarter.
Las Vegas Sands Corp. (NYSE:LVS) is an American casino and resort company. Recently, Stifel lifted its price target on Las Vegas Sands Corp. (NYSE:LVS) to $51, with a Buy rating on the shares, highlighting the company’s prospective investment in Macau gaming.
As of Q2 2021, 48 hedge funds tracked by Insider Monkey were bullish on Las Vegas Sands Corp. (NYSE:LVS), compared with 62 in the previous quarter. The total worth of these stakes is over $1.75 billion. D E Shaw was the company’s largest shareholder in Q2, owning roughly 6 million shares.
Baron Funds mentioned Las Vegas Sands Corp. (NYSE:LVS) in its Q2 2021 investor letter. Here is what the firm has to say:
“The shares of Las Vegas Sands Corporation, a leading developer of luxury casino resorts in Macau and Singapore, declined in the most recent quarter in large part due to COVID-19 travel-related restrictions. We believe the shares are attractively valued and will recover sharply when travel restrictions are lifted.”
2. MGM Resorts International (NYSE:MGM)
Number of Hedge Fund Holders: 59
In Q2 2021, MGM Resorts International (NYSE:MGM) presented a positive hedge fund sentiment as 59 hedge funds tracked in the Insider Monkey database reported owning stakes in the company, up from 57 in the previous quarter. The total value of these stakes is over $2.8 billion.
MGM Resorts International (NYSE:MGM) is an American hospitality company that also specializes in casinos and resorts. Recently, Credit Suisse upgraded MGM Resorts International (NYSE:MGM) to Outperform, while lifting its price target to $68. The firm’s analyst expects the company to report strong Q3 results.
MGM Resorts International (NYSE:MGM) also operates its sports betting app, BetMGM, which targets over $1 billion in net revenue in 2022, owning to the growing sports betting industry.
Oakmark Funds mentioned MGM Resorts International (NYSE:MGM) in its Q2 2021 investor letter. Here is what the firm has to say:
“We originally established our position in MGM during 2016. At that time, we believed its valuation did not reflect the improving fundamentals of the Las Vegas Strip, which was recovering from years of overbuilding. The market had also failed to recognize the quality of MGM’s assets and its potential to dramatically reduce a bloated cost structure. A long history of private market transaction activity further supported our view that the stock was materially undervalued. However, choppy execution by former management and a profit growth plan that failed to live up to expectations made this a bumpy (yet rewarding!) investment for Oakmark. Perhaps the biggest surprise relative to our initial thesis is the momentum and excitement surrounding the online sports gambling market. The company’s BetMGM platform has quickly staked the third-largest market position in online sports betting with plans to capture up to 25% of this $30+ billion market, which continues to grow rapidly. The exuberance surrounding digital gaming, coupled with expectations for a strong post-pandemic recovery in Las Vegas, has lifted the stock price to our estimate of intrinsic value. Therefore, we sold our shares in favor of more attractively priced alternatives.”
1. Caesars Entertainment, Inc. (NASDAQ:CZR)
Number of Hedge Fund Holders: 73
Caesars Entertainment, Inc. (NASDAQ:CZR) tops our list of the largest gambling stocks of 2021. It is one of the largest casino companies in the world, with over 50 properties and several golf courses.
On October 25, Wells Fargo added Caesars Entertainment, Inc. (NASDAQ:CZR) to its list of the Signature Picks, noting the company’s potential to become the leader in the iGaming sector. In Q2, Caesars Entertainment, Inc. (NASDAQ:CZR) reported revenue of $2.5 billion, up significantly 1,876% from the prior-year quarter. The stock gained 132.6% in the past year.
At the end of June, 73 hedge funds tracked by Insider Monkey reported owning stakes in Caesars Entertainment, Inc. (NASDAQ:CZR), compared with 76 in the previous quarter. The total value of these stakes is over $1.83 billion.
You can also take a look at 15 Best Casino Stocks to Invest In and 10 Best Sports Betting Stocks to Buy Now
