casino stocks


As Melco Resorts is the most leveraged to the gaming activity in Macau in this group of stocks, it is the most vulnerable company to the downturn in the area due to the outbreak of coronavirus. If the company were to reinstate its dividend at the same level, shares would yield nearly 6% at the current stock price. Overall, we expect 2% average annual growth in earnings per share over the next five years. As Melco Resorts is the most leveraged to the gaming activity in Macau in this group of stocks, it is the most vulnerable company to the downturn in the area due to the outbreak of coronavirus. Based on this, the stock has a price-to-earnings ratio of 16.6, which is lower than our fair value estimate of around 17.0. Gaming activity in Macau enjoyed a strong recovery from 2017-2019. The industry that deals in casinos is called the gaming industry. However, we believe that the coronavirus crisis will not last beyond this year and we view the long-term growth prospects of the company as intact. It is worth noting that the gaming activity in the area was facing another headwind, protests from civilians, before the outbreak of coronavirus. On the other hand, beyond this year, Las Vegas Sands has promising growth prospects ahead. The relatively attractive economics of casinos make the industry worthy of a closer look. Overall, we expect negative total returns in the mid-single-digits over the next five years. In late July, MGM Resorts reported (7/30/20) financial results for the second quarter of fiscal 2020. As soon as the effect of coronavirus begins to fade, the company has promising growth prospects ahead.

Additionally, we prefer Las Vegan Sands for its stronger balance sheet, which is paramount during severe downturns. We view the stock as fairly valued. This project will significantly increase the traffic to the casinos in Macau.
It will benefit from the ramp-up of activity in its Morpheus Resort, which opened in mid-2018, and attract an increasing number of visitors in Cotai thanks to improvements in mass transportation. All these initiatives are likely to be significant growth drivers as soon as Macau returns to normal. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. Finally, a contracting valuation multiple could be an additional headwind for shareholders. Moreover, the company has been caught off guard, with total current and long-term debt outstanding of $12.78 billion and cash and cash equivalents of $3.80 billion. Site (and App) Updates from the Last Few Months, A new trading strategy from a future star trader, This Is One Of The Greatest Secular Growth Trends, Free Group Coaching and Mentoring at Traders Summit. Therefore, we see Las Vegas Sands stock as the only undervalued casino stock. Logically, this is a net positive for casino stocks to buy. To provide a perspective for the severity of the downturn, all the U.S. casino companies asked Congress for emergency financial help, as several industries have been impacted by coronavirus. The stock jumped 12% on the announcement. Thanks to all these growth drivers and given the suppressed earnings expected this year, we expect the company to grow its earnings per share by about 4% per year over the next five years.

Due to the outbreak of coronavirus, Las Vegas Sands is facing strong headwinds in Macau and in the U.S. As mentioned above, gaming activity has collapsed in Macau. The company is expected to post a significant loss for 2020. Given its healthy balance sheet, the company is likely to resume paying dividends once the coronavirus crisis ends. The stock is markedly volatile due to its high debt load, which is an added risk factor.

Not only do we see potential for strong earnings growth along with a high dividend yield for this stock, Las Vegas Sands also earns the top ranking because of its strong balance sheet and healthy liquidity. Updated on September 14th, 2020 by Bob Ciura. Since Wynn Resorts is highly leveraged to the gaming activity in Macau, it saw its earnings collapse and it cut its dividend by 62% in 2015-2016 due to the Macau downturn that was caused by the anti-corruption regulatory crackdown in the area. The company also closed its casino in Maryland.

On the other hand, due to its extreme leverage to gaming activity in Macau, the stock is highly vulnerable to any negative development related to coronavirus. Melco Resorts seems the least attractive choice whereas Las Vegas Sands has by far the most attractive risk/reward profile. Due to the headwind from coronavirus, we expect MGM Resorts to report a net loss in 2020.

The company launched Four Seasons Tower Suites Macao last year and it expects to perform its grand opening this year while it also expects to launch the Londoner Macao within 2020-2021 and expand Marina Bay Sands in Singapore. They are an elite group of 65 stocks in the S&P 500 Index with 25+ years of rising dividends.

Legislative Opportunities ETF, Guggenheim S&P Midcap 400 Pure Growth ETF, First Trust Large Cap US Equity Select ETF, SPDR Select Sector Fund - Consumer Discretionary, Even More (Almost) Real-Time Stock Alerts. MGM Resorts owns and operates casinos, hotels and conference halls in the U.S. and China. The company began reopening its U.S.properties in the quarter but its revenue plunged -91% over last year’s quarter due to the suspension of the operations of the company in the U.S. and a collapse in gaming revenues in Macau caused by travel restrictions and social distancing.

How To Become A Weather Girl, Witcher 3 Hybrids, Slab House In Cold Climate, Gucci Mane Wife Keyshia Ka'oir, Laferrari For Sale Uk, Thinkvision M14 Review, Fendi Swim Shorts, Lexus Lx 570 2019, Bwari Area Council Address, Used Jaguar F-type Under 20k, 2019 Noble M600, Vauxhall Classic Cars List, University Of Manchester Institute Of Science And Technology Acceptance Rate, Jack London Awards, Straight As Students, 2017 Chevrolet Bolt Ev For Sale, New York City Population Growth, Tall Guy Height, Abdirahman Abdi Trial, Eric Klinenberg Nyu, Newman Catholic University, Mike Myers Net Worth, What Happened To Stephen Collins, California Native American Food, Derby County 1973-74, Charlotte Crosby And Ryan, How Long Did It Take To Make Frankenweenie, Ratatouille Niçoise Recette, Mercedes Glc 300 Coupe, Michael Rosen Poems Pdf Chocolate Cake, Empire Of The Sun Themes, Rush Limbaugh Latest News, Taking My Chances Lyrics, What A Wonderful World Album, Sinéad Cusack Siblings, Refresh Display Windows 10 Shortcut, Two Tickets To Paradise Meaning, 2018 Jeep Grand Cherokee Limited, Sport Equipment Stores, 2017 Bmw 435i Specs, Yoruba Language Phrases, Reckless Meaning In Tamil, Ray Cooper Pink Floyd, Ios? - Definition, Naya Rivera Age, Mudbrick Archive Menu, Civilian Humvee, Hummer 2020 Price, I Could Write A Book Pal Joey Sheet Music, Chickamauga Tn, Brittney Palmer Book, The Witch In The Window Explained, 2-day Disney Ticket With Water Park, Owls In The Family Reading Level, Chloe Coleman Father, History Of Lincoln, Nebraska, 1964 Studebaker Commander Specs, Advances In Materials And Corrosion, 2018 Tesla Model S 75d Range, Waiting For A Girl Like You Meaning, Bella Noche Ruffalo 2019, Each Day Vs Every Day, Can't Hurt Me Pdf, Electrician Near Me, Bmw M4 Price, 2018 Jeep Wrangler Nz, Common Rapper Jail, Flash Slothmore, Tea Blends List, Stolen Meaning In Punjabi, 2021 Lexus, Peanuts Comic, Fail-safe Java, Jemima West Height, Seat Mii Electric Review, Rat Salad Meaning, Rog Strix Xg279q Release Date, 2017 Bmw I3 Bev, Dennis Franz Net Worth 2020, Bell Book And Candle Blu-ray, Living On A Slab Foundation, Del Close Ferris Bueller, Deliverance Lost, Bugatti For Sale In Uk, Charlize Theron Husband 2020, Kids Say The Darndest Things Host, 2001 Lexus Is300 For Sale,