7 Best Casino Stocks to Buy on the Dip

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Wells Fargo is selectively bullish on gaming and casino stocks. The Dow Jones U.S. Gambling Total Stock Market Index is down 6.6% since Sept. 7.

MGM Resorts International is a global gaming company. Las Vegas accounts for about 45% of total normalized revenue. Regional U.S. casinos account for 28%, and China accounts about 23%. The company’s BetM MGM app was second in market share in aggregate U.,S., online betting in the first half of 2021. Wells Fargo has an “overweight” rating and a $55 price target for MGM stock.

Flutter Entertainment is the world's largest bookmaker and owner of Paddy Power, BetFair and PokerStars. It also owns a 95% stake in online sports betting app FanDuel. Wells Fargo has an “overweight” rating and a $243.64 price target on the London-listed FLTR.L stock. U.S. investors can find Flutter trading over the counter under the symbol PDYPY. Boyd Gaming is a U.,S.-based regional casino operator with heavy exposure to Las Vegas. Politzer estimates its Las Las business has greater than 50% margins.

Wells Fargo has an “overweight” rating and a $137 price target for Caesars Entertainment Inc. CZR stock closed at $113.40 on Sept. 29. Caeresars operates 44 casino and entertainment properties in 13 U.S. states. Politzer estimates Caer's online betting business is worth about $42 per share.

Wells Fargo has an "overweight" rating and a $255 price target for Churchill Downs Inc. stock. The stock closed at $238.58 on Sept. 29.

DraftKings is an online betting and daily fantasy sports platform. It controls about 17% share of the U.S. online gambling market. Wells Fargo has an "overweight" rating and a $73 price target for DKNG stock.

Red Rock Resorts owns 10 gaming and entertainment facilities and 10 smaller casinos in the greater Las Vegas area. Politzer estimates the company's Durango casino development is worth about $4 per share. Wells Fargo has an “overweight” rating and a $62 price target for RRR stock.

7 Best Casino Stocks to Buy on the Dip: MGM Resorts International, Flutter Entertainment PLC, Caesars Entertainment Inc. and CZR.