50% of their revenue. The industry saw some of its biggest losses in decades as empty casinos became commonplace.
However, the dip in physical gambling was soon replaced by online gambling that emerged as the new face of the industry. Companies that once earned their revenue from casinos saw a major upside in online gambling. Many believe this sector will continue to thrive long after the pandemic as the potential for growth in this sector remains vast.
Although gambling stocks — just like the game — remain largely speculative, the return of major sports in the coming months is likely to be a boon for gambling companies. Here are seven stocks that you should hold on to:
InvestorPlace – Stock Market News, Stock Advice & Trading Tips” data-reactid=”19″>InvestorPlace – Stock Market News, Stock Advice & Trading Tips
- Las Vegas Sands (NYSE:LVS)
- MGM Resorts (NYSE:MGM)
- Penn National Gaming (NASDAQ:PENN)
- Wynn Resorts (NASDAQ:WYNN)
- Caesars Entertainment (NASDAQ:CZR)
- Boyd Gaming (NYSE:BYD)
- Melco Resorts (NASDAQ:MLCO)
Las Vegas Sands (LVS)
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Las Vegas Sands holds the title as one of the highest valued gambling stocks in the world, and with good reason. Before the pandemic took its toll on this prosperous industry, the company’s global presence was a boon for its stock price.
a 14% decline in the company’s revenue. However, it wasn’t all bad news for the gaming company as earnings per share (EPS) improved by 39% during the year.
Although the earnings report was mostly a mixed bag, investors remain fairly bullish on the future of the company. Las Vegas Sands earns a majority of revenue from Asia, which was among the first regions to show early signs of recovery. As businesses reopen and travel picks up, it is likely that this gambling stock will be back to its glory days.
MGM Resorts (MGM)
Source: Michael Neil Thomas / Shutterstock.com
$4.8 billion cash position and EPS of $1.52 per share loss, beating Wall Street estimates.
a $1 billion investment (12% stake) in MGM Resorts. The news sent the company’s stock price soaring by 14%.
MGM is a safe gambling stock for the long-haul. With high-profile gambling partnerships with the Denver Broncos and the National Baseball Association in the pipeline, there is a large potential for growth.
Penn National Gaming (PENN)
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A fan favorite gambling stock this season is Penn National Gaming. Although the company’s earnings this quarter were seemingly weak with corona-related closures, resulting in a lot of red ink on the books, the future prospects for the company are where its strengths lie.
Looking into the line of recovery, Penn’s physical casinos and have reopened across the country and are delivering results as expected. With a presence in over 19 states, the company is hoping for a swift comeback in the coming months.
62% of Barstool’s users gamble on sports, resulting in 41 million new users for Penn National Gaming.
While performance this quarter was anything but stellar, the future of this company is bright. With a multi-million dollar deal in the books and the reopening of physical casinos, we can expect some big thing from this gambling stock in the coming months.
Wynn Resorts (WYNN)
Source: Wangkun Jia / Shutterstock.com
nearly 95% and loss per share stood at $6.14.
will be issued as well.
This is great news for Wynn Resorts as it owns major properties in this region. The decision to ease visa restrictions will result in a greater influx of tourists in the coming months and will accelerate the company’s path to recovery. Although gambling stocks have seen a lot of volatility this year, we recommend you stay invested in WYNN stock for its future returns.
Caesars Entertainment (CZR)
Source: Jason Patrick Ross/Shutterstock.com
Caesars is a household name in the gambling industry. The company swung a loss in Q2 with a majority of the properties closed through this period. While the news was troubling, investors remain bullish on the future of the company.
This optimism comes after Caesar’s recent acquisition by Eldorado Resorts. The newly formed company will operate under Caesar’s name but will be run by management at Eldorado. Experts believe that the merger will be fruitful in the long-term with Caesar’s national presence and Eldorado’s regional footprint. This could do wonders for the overall valuation of the company.
Caesars Entertainment may seem like a risky proposition right now, but with a successful merger under its belt, the gambling stock is a worthy pursuit for the long haul.
Boyd Gaming (BYD)
Source: Ken Wolter / Shutterstock.com
EPS was 98 cents which was lower than the estimated $1.51. Revenue was also lower by 75.2% in a year-over-year comparison at $209 million, but this was still higher than the estimated $131 million.
raised $600 million in cash with an 8.6% interest until 2025 while keeping its cash burn to a minimum.
As casinos start opening their doors, Boyd Gaming is likely to see some big gains in its future. The company also launched iGaming, an online sports betting platform and as major sports like baseball and football return, online sports betting will be a major revenue generator for the company.
I would recommend holding on to this gambling stock as casinos make their return in the coming months. While it is unlikely that we will see some immediate gains, the long-term prospects are definitely promising.
Melco Resorts (MLCO)
Source: Maridav/Shutterstock, Inc.
decline by 81.4% according to Yahoo Finance.
$1.2 billion cash balance and selling its ownership stake in Crown.
These indicators point towards a healthy financial future for the company despite the bleak Q2 predictions. The Chinese government has also eased visa restrictions in Macau to include tourist visas as well. This, coupled with the reopening of casinos in the region, will be a boon for Melco Resort’s stock price in the coming months.
Despite the gloom, this gambling stock is a worthy investment for its future potential.
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