Hey guys! It’s Vivian — your HOT Stock Girl!
Today we are talking about 3 top casino stocks to invest in! Those being WYNN resorts, Las Vegas Sands and Eldorado Resorts.
The BIG Change in the casino industry — is the Supreme Court RULING allowing STATES to decide on Sports Gambling
The first stock is WYNN resorts! — Their stock symbol is W-Y-N-N — Wynn is currently trading at 5/per share.
Wynn owns casinos in Las Vegas — but — they make most of their money in China. They IPO’d in 2002.
Steve Wynn became famous in Las Vegas in the 1980’s — when he ran the Golden Nugget.
After that — he built the Mirage — Then in the 1990s he built my personal favorite: —- The Bellagio.
Lets go into financials:
market cap … billion
Cash …………. bililion
Total debt ….. .3 billion
EBITDA ….. .7 billion
Revenues grew 41% in 2017, Thanks to the opening of the new resort in Cotai, China.
The stock has dropped recently because Macau comps came in up 12% which missed the 18% forecast.
Long term this creates a buying opportunity –as Wynn resorts has plans to open up a casino in Massachusetts and — continue to grow in the Asian markets.
Now let’s move on to Las Vegas sands. The symbol is LVS
They IPO’d in December of 2004.
The stock price is
Similar to Wynn resorts –Las Vegas Sands owns casinos in Las Vegas and China.
Let’s move on to financials:
The Market cap is — billion
Cash — .6 billion
Total debt — .3 billion
Ebitda – 5 billion
2017 revenues grew 13%.
Its possible that Wynn and Las Vegas Sands have been trading down lately — because of the threats President Trump has made to impose tariffs on chinese imports —
long term – the tariff issue will be resolved allowing these companies to do well over the next few years.
Moving on to my FAVORITE casino stock — ELDORADO RESORTS —
Stock symbol E-R-I.
The stock is currently trading around per share.
The stock has been On FIRE since 2015 — and I BELIEVE the stock has more room to run.
There are two reasons the stock should continue to rise:
Acquisitions and COST Synergies
Eldorado has been on a Buying Spree over the past 3 years — Their Investment Bank is JP Morgan.
In 2015 they acquired Mountaineer Gaming. — They followed that up by buying MGM’s Reno properties and acquired the Isle of Capri casinos. — Eldorado recently announced they are buying the Tropicana casino properties owned by Carl Icahn.
Eldorado’s management — including the CARANO family and C.F.O. Tom REEG — simply know how to operate casinos BETTER than their competitors.
Management has a wide network of food suppliers and restaurant managers that help contain food costs. — They have their own brands of beer, wine, and coffee which helps increase their margins.
They operate their hotels efficiently — which leads to an increase in REV-PAR.
They are also great at managing their labor expense.
ALL of these Cost Savings drop to the bottom line — which increases their Free Cash Flow.
With the increased Free Cash Flow, they are able to pay down debt — which over time — allows them to make more Acquisitions.
By year end — I believe they will be ready to make their next acquisition.
Look for them to bid for some of the Caesar’s casino properties — then — make a bid for Red Rock Resorts, or the Golden Nugget.
Ultimately — a merger with Boyd Gaming would push the stock well above a hundred dollars per share.
So there you have it.
3 Top Casino Stocks to INVEST in.
MY PERSONAL RESEARCH
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Top 3 Casino Stocks To Invest In: WYNN, LVS, Eldorado Resorts | HotStockGirl