Keep an eye on casino stocks.
With pandemic fears fading, casinos are back to raking in the green. In the first quarter of the year, U.S. commercial gaming revenue topping $11 billion in the first quarter of 2021, according to the American Gaming Association (AGA).
“The revenue total marks a 4.1 percent increase over the industry’s pre-pandemic performance in Q1 2019 and is a 17.7 percent increase over Q1 2020, when the entire gaming industry shut down in March,” they added.
In addition, “Las Vegas Strip operators have operating momentum that should result in higher-than-expected second-quarter earnings results and rising second-half estimates, according to JPMorgan,” as noted by Barron’s.
As business gets back to normal, some of the top stocks to consider on the gambling boom include Penn National Gaming (PENN), Caesars Entertainment (CZR), Wynn Resorts (WYNN), and Draftkings Inc. (DKNG). All of which are just beginning to pivot higher.
Or, look at MGM Resorts (MGM).
Deutsche Bank just upgraded the stock to a buy on the Vegas comeback, and improving margins. The analysts have a $54 price target. “MGM is also seen benefiting from trends in Las Vegas including group bookings and Raiders football, according to the analyst. The potential for strategic action and/or monetization of the sports vertical is also noted, the analyst report mentioned,” as noted by Investing.com.
In short, investors may want to roll the dice on casino stocks, as life gets back to normal.
