Table of Contents
If you’re a savvy gambler who knows where to put your money, here are some gambling stocks for your consideration.
The world was caught off-guard with the coronavirus pandemic and many people were affected by so many changes needed to help stop the spread of the virus. The pandemic took a toll on many industries, including casinos. Many casino establishments were forced to stop their operations because of the unstable economy throughout the world.
During the lockdowns, many people came up with major adjustments to continue their work, school, and other daily activities. While people waited for the development of vaccines, there was an evident rise in internet usage for improving the economy back, as well as leisure.
The casino and gambling industry also managed to bounce back from the slump, and some are making big adjustments on how to earn in the industry. It is now a stabilized industry, and it provides many opportunities for investors. These developments are catching investors’ attention and will help generate greater revenues for online betting, online casinos, and live casinos.
Profitable Gambling Stocks
Here are the top 10 notable gambling stocks of 2021 to inspire more investors to get involved in the industry.
Red Rock Resorts, Inc.
Hedge Fund Holders: 26
One of the leading gaming companies in the United States, Red Rock Resorts, Inc., operates with more than 21 casinos and other properties throughout the country. The company also recently launched an online social casino, which focuses on attracting more players and investors. The Red Rock Resorts, Inc. received a price target lift to $26, accompanied by a buy rating on their shares.
There were 26 hedge funds with stakes in Red Rock Resorts, Inc. tracked by Insider Monkey at the end of Q2, compared to their previous quarter with 28 and a total value of $658.2 million. The biggest shareholder of Red Rock Resorts, Inc. in Q2 was Eminence Capital, which owned around 5 million shares.
Red Rock Resorts, Inc. started the year with a 108.1% return to shareholders as they gained 191.1% in stocks from the previous year. They are one of the noteworthy gambling stocks that investors can buy in 2021.
DraftKings Inc.
Hedge Fund Holders: 26
DraftKings Inc. is an American sports betting company, and they belong to a number of companies that faced a lot of hardships when the pandemic started. They reached $12.49 each share in March 2020 but managed to bounce back and gain 25.97% in 2021. In October, Citigroup began its coverage on DraftKings Inc. that targeted a $66 price on Buy rating.
Experts from the firm anticipate the company’s offer to its investor’s long-term growth with its growing iGaming market. DraftKings Inc. had revenue of $298 million in Q2, which is a 320% increase from the past year’s quarter. As tracked by Insider Monkey, there were 26 hedge funds at the end of Q2.
Melco Resorts & Entertainment Limited
Hedge Fund Holders: 29
Melco Resorts & Entertainment Limited has resorts containing casino gaming facilities in Europe and Asia. They also have a 222% growth in their revenue at the end of Q2 in 2021 at $566.7 million. Insider Monkey’s report says that there were 29 hedge funds at the end of Q2, the same as the previous quarter. Melco Resorts & Entertainment Limited has a total value of $755 million for these stakes, better than their $728.3 million in Q1.
Citigroup placed a price target of $14.5 with a Buy rating on the shares of Melco Resorts & Entertainment Limited, showcasing Macau’s 32% gaming revenue in September.
Churchill Downs Incorporated
Hedge Fund Holders: 35
Churchill Downs Incorporated had a positive hedge fund sentiment in Q2 of 2021. Insider Monkey tracked 35 hedge funds owning stakes in the company, which was an improvement from the previous quarter’s 19. The stakes had a value of $694.2 million. Churchill Downs Incorporated has over 16 industry-leading casinos, making them one of 2021’s largest gambling stocks.
Berenberg recently started their coverage on Churchill Downs Incorporated with a $294 Buy rating price target. Analysts from the firm showed confidence in the digital segment of the company at the time of the gaming sector’s recovery. Churchill Downs Incorporated had an IPS of $3.08 in Q2, better than the estimates by $0.44. The company also presented its revenue at 178.3% growth at $515 million.
Boyd Gaming Corporation
Hedge Fund Holders: 36
Boyd Gaming Corporation reported their Q3 results with $1.30 EPS, better than the estimates by $0.04. The company had an $846 million revenue, a big improvement from $652.2 million during last year’s same period.
Boyd Gaming Corporation is a company from the United States that features gaming and hospitality services. Tracked by Insider Monkey, the company’s number of hedge funds increased to 36 in Q2 2021, from the previous quarter’s 22. Boyd Gaming Corporation had a total value of $534.8 million from these stakes, improving their Q2 by $299 million.
Morgan Stanley recently lifted Boyd Gaming Corporation’s price target to $90 and managed an Overweight rating on the shares. Analysts from the firm confirmed a robust Q3 result from the company.
Wynn Resorts, Limited
Hedge Fund Holders: 37
Wynn Resorts, Limited is an American company that provides high-end hotels and casinos for people. The company also launched WynnBet, their online sports betting app and casino that is available in six states of the country.
Wynn Resorts, Limited started in 2002 and managed to be one of 2021’s largest gambling stocks. They had stable Q2 results, with a -$1.12 EPS better than $0.46 estimates. The company posted a big growth in their revenue at $990.1 million, compared to the same period last year’s $85.7 million.
Morgan Stanley recently placed a $107 price target on the company, setting an Overweight rating on their shares. Wynn Resorts, Limited had 37 hedge funds at the end of Q2 as tracked by Insider Monkey, compared to their 49 in the previous quarter. They had a total value of $712.4 million from these stakes.
Penn National Gaming, Inc.
Hedge Fund Holders: 40
Morgan Stanley recently posted an Equal Weight rating and $85 price target on their Penn National Gaming, Inc. coverage. It highlights the company’s sports betting and iGaming segment. Penn National Gaming, Inc. is a casino company in the United States and runs over 44 casino establishments throughout the country, making them one of the most significant gambling stocks in 2021.
Insider Monkey databases reported 40 hedge funds at the end of Q2, against 42 in the previous quarter of Penn National Gaming, Inc. It has a total value of $1.03 billion.
Las Vegas Sands Corp.
Hedge Fund Holders: 48
Las Vegas Sands Corporation is one of the largest gambling stocks of 2021. The company had a 92.2% Q3 results year-over-year growth of $857 million in revenue. Their casino revenues reached $533 million, better than $281 million in their previous year’s quarter.
Las Vegas Sands Corp. is a resort and casino company in the United States. Stifel recently lifted its price target to $51 and gave a Buy rating on their shares. These events highlight the company’s focus on investing in Macau gaming.
There are 48 hedge funds tracked by Insider Monkey as of Q2 of 2021, compared with their previous quarter with 62 hedge funds. They have a total of $1.75 billion worth of stakes. The company’s Q2 largest shareholder was D E Shaw, with almost 6 million shares.
MGM Resorts International
Hedge Fund Holders: 59
MGM Resorts International had 59 hedge funds in Q2 of 2021, as tracked by Insider Monkey, showing an improvement from the previous quarter with 57. These stakes gave them a total value of $2.8 billion.
MGM Resorts International is one of the best in rendering resorts and casinos services. They recently received an upgrade from Credit Suisse to Outperform and lifted its price target to $68. The company also has BetMGM, a sports betting app that targets a net revenue of over $1 billion in 2022 as the sports betting industry steadily grows.
Caesars Entertainment, Inc.
Hedge Fund Holders: 73
Caesars Entertainment, Inc. has more than 50 properties and a number of golf courses to manage, making them one of the largest casino companies throughout the world. Wells Fargo included Caesars Entertainment, Inc. in their Signature Picks, making them a great competitor in the iGaming sector. The company had a $2.5 billion revenue in Q2, a significant 1,876% improvement from the prior-year quarter. Their stocks gained 132.6% from the previous year.
Insider Monkey reported 73 hedge funds at the end of June, compared to 76 in the previous quarter. Caesars Entertainment, Inc. has over $1.83 billion stakes value.
Final Thoughts
The gambling industry has several factors that help in the economy's growth. The companies that operate in this industry render services such as casinos, resorts, hotels, and many more worldwide. They also involve online gambling, a huge factor in gambling operators’ quest to improve their investors’ services. With a massive range of business ventures, investing in gambling stocks becomes worthwhile.
Have you invested in any of these gambling stocks yet? If you have casino winnings, would you gamble in these stocks?
