This article will focus on the top 10 largest gambling stocks for 2021. You can skip reading the full analysis of the casino and gambling industry by reading The 10 Largest Gaming Stocks in 2021.
Covid-19, which was created in response to the closure of global casinos, had a profound impact on the gambling industry. The American Gaming Association reported that U.S. casino revenues fell 31.3% in 2020, the lowest level since 2003.
After some initial stumbles, the online gambling market has seen a rebound thanks to the rise of online gambling and firms like online bingo. Research and Markets have released a report stating that the global gambling market will increase at a CAGR of 7% to reach $674.7 Billion by 2025, up from $516 billion in 2020.
Online gambling has stabilized the industry and provides lucrative investment opportunities. As sports betting becomes legalized in various states, the industry is gaining popularity.
Forbes reports that it received investments totaling more than $5.95 billion in Q3 2020. By 2025, online sports betting will be accessible to over 96% of Americans. Sports betting alone will generate revenue of $175.8billion and reach $200billion by 2023.
S&P 500 Casinos & Gaming Index recorded a 35.33% rise, compared with the 34.2% returns. After the introduction of vaccines, investors expect a rebound in gambling stocks. Jim Cramer states that travel has become easier thanks to vaccinations. This will lead to increased gambling and casino activity in the United States. Nevada casinos won $1.23 trillion for May, their largest single-month win in state history.
Caesars Entertainment, Inc., MGM Resorts International, NYSE:MGM), Las Vegas Sands Corp., NYSE:LVS), Penn National Gaming, Inc., NASDAQ:PENN), Wynn Resorts, Limited, NASDAQ:WYNN are some of the most prominent gambling stocks.
1. Boyd Gaming Corporation (NYSE.BYD).
Boyd Gaming Corporation (NYSE.BYD) announced its Q3 results on October 26. The earnings per share (EPS) was $1.30 which beat estimates by $0.04. Boyd Gaming Corporation (NYSE.BYD) reported $846 million in revenue, an increase of $652.2 Million over the previous year.
Boyd Gaming Corporation (NYSE.BYD), a US gaming and hospitality company, is now listed on the NASDAQ. Insider Monkey tracked 36 hedge funds with stakes in Boyd Gaming Corporation compared to 22 during the previous quarter. The total value of these stakes is $534.8 million. This is significantly more than the Q2 of $299 million.
Morgan Stanley has increased its Boyd Gaming Corporation (NYSE.BYD.) price target from $90 to $90, while still maintaining an Overweight rating. An analyst at the firm highlighted the company’s strong third-quarter result.
2. Churchill Downs Incorporated (NASDAQ:CHDN).
Churchill Downs Incorporated, NASDAQ.CHDN showed positive sentiment in Q2 2021. This represents an increase of 19 hedge fund stakes over the previous quarter. These stakes amount to $694.2 million. Churchill Downs Incorporated (NASDAQ:CHDN) is still the number one gambling stock for 2021.
Berenberg began coverage recently on Churchill Downs Incorporated. (NASDAQ:CHDN). The analyst gave the company a Buy rating and a $294 price target. The firm’s analyst expressed confidence in the company’s digital segments, as the gaming sector recovers. Churchill Downs Incorporated (NASDAQ:CHDN) posted a Q2 EPS of $3.08, which was $0.44 higher than the estimates. Revenue grew by 178.3% to $515 million during the same period.
3. Melco Resorts & Entertainment Limited NASDAQ :MLCO
Melco Resorts & Entertainment Limited (NASDAQ:MLCO) operates resorts in Asia, Europe, and the United States that offer casino gaming. The company’s Q2 2021 revenue increased by 222% to $566.7million.
Insider Monkey’s Q2 data revealed that 29 hedge funds were bullish on Melco Resorts & Entertainment Limited NASDAQ :MLCO. This is the same as the quarter before. These stakes now amount to $755 million, an increase of $728.3million in Q1.
Citigroup has established a $14.5 price target for Melco Resorts & Entertainment Limited (NASDAQ:MLCO) in September. The shares are rated Buy. This is due to a 32% rise in Macau gaming revenues for September.
4. DraftKings Inc.
DraftKings Inc. (NASDAQ:DKNG) suffered greatly from the pandemic, reaching $12.49 per share in March 2020. However, the stock recovered and has gained 25.97% within a year. DraftKings Inc., an American company that offers sports betting, is a US operator.
Citigroup began its coverage of DraftKings Inc., NASDAQ :DKNG, in October. The company was given a Buy rating and a price target of $66. The analyst believes that the company has the potential to offer long-term success for investors due to the iGaming industry’s growth. DraftKings Inc. (NASDAQ:DKNG) reported Q2 revenue of $298 Million, a 320% increase on the previous-year quarter.
Insider Monkey tracked 26 hedge funds and discovered that they held stakes in DraftKings Inc. at the close of Q2.
5. Red Rock Resorts, Inc.
Red Rock Resorts, Inc.,NASDAQ:RRR, operates more than 21 casinos across the U.S. This will attract more customers. Red Rock Resorts, Inc. (NASDAQ.RRR), saw its price target rise to $26, which was received with a Buy rating.
Insider Monkey’s Q2 report revealed that 26 of 26 hedge funds it tracks owned stakes in Red Rock Resorts, Inc. (NASDAQ:RRR) compared to 28 during the previous quarter. These stakes amount to $658.2 million. Eminence Capital, with approximately 5,000,000 shares, holds Red Rock Resorts, Inc.’s largest shareholder (NASDAQ.RRR).
Red Rock Resorts, Inc.,NASDAQ:RRR, has delivered a 108.1% annual dividend to shareholders, while its stock price gained 191.1% over the past year.
Red Rock Resorts, Inc., NASDAQ :RRR, MGM Resorts International, NYSE:MGM), Las Vegas Sands Corp. (NYSE:LVS), Penn National Gaming, Inc., NASDAQ PENN, Wynn Resorts, Limited, NASDAQ :WYNN) are just a few of the stocks that you should buy in 2021.