7 Best Gambling Stocks to Buy
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Gambling industry has been hit hard by the pandemic in 2020. Las Vegas and Macao casinos have had a particularly difficult struggle due to travel restrictions. The shift to online gambling and sports betting apps accelerated the shift. Bank of America analysts recommend these gambling stocks to buy in 2021.
Boyd Gaming operates 30 casinos in 10 U.S. states, including 11 casinos near Las Vegas. First quarter earnings before interest, taxes, depreciation, amortization and restructuring or rent were 31% above consensus estimates and 28% higher than pre-pandemic peak levels. Bank of America has a "buy" rating and an $80 price target for BYD stock.
Churchill Downs owns the Kentucky Derby race track and more than a dozen U.S. regional casinos and racetracks. Bank of America has a "buy" rating and a $250 price target for CHDN stock.
Gaming and Leisure Properties owns 44 casino properties throughout the U.S. that it leases to casino operators. The company has a new relationship with Bally’s Corp. (BALY) that has produced more than $60 million in annual rent and $500 million of acquisition financing. Bank of America has an "buy" rating and a $55 price target for GLPI stock.
Penn National Gaming operates 41 casinos and other facilities throughout the U.S. and Canada. It has a 36% ownership stake in Barstool Sports. In June, Penn announced a $400 million offering and updated its second-quarter guidance. Bank of America has an "buy" rating and a price target of $110 for Penn stock.
VICI Properties Inc. (VIP) was spun off from Caesars Entertainment Inc (CZR) in 2017. VIP owns multiple casinos, hotels and racetracks, along with four golf courses throughout the U.S. It also acquired the Venetian Las Vegas from Las. Vegas Sands Corp. in March. Bank of America has a "buy" rating and a $36 price target for VICi stock.
Wynn Resorts owns and operates casinos in Las Vegas, Macao and Everett, Massachusetts. In May, Wynn announced it is spinning off its WynN Interactive online gaming division and merging it with a special-purpose acquisition company that will trade under the ticker WBET. Bank of America has a "buy" rating and a $145 price target for WYNN stock.
Melco Resorts & Entertainment Ltd. owns and operates several integrated casino resorts in Macao and the City of Dreams resort in Manila, Philippines. Bank of America has a "buy" rating and a $23.20 price target for MLCO stock.
7 Best Gambling Stocks to Buy: Churchill Downs Inc. (CHDN), Gaming and Leisure Properties Inc (GLPI), Penn National Gaming Inc., VICI Properties (VICi), Wynn Resorts Ltd. and Melco Resort & Entertainment Ltd (MLCO).
