Casino Companies Stock

Posted on 8/1/2022 admin

Casino Companies Stock Rating: 6,6/10 7624 votes

Casino Companies Stocks
Private Casino Companies

The Technical Aspects of Trading Shares on the Market

When the numbers were crunched for Paddy Power Plc ADR, the -DI was higher than the +DI. This may mean traders are waiting to see if stocks are starting to show signs of bearish momentum. Stock analysis widely uses moving average indicators. Numerous traders use a combination of different time frames and moving averages to the trend direction of stocks. One of the most popular combinations is the use of 200-day and 50-day moving averages. The 200-day MA may be used by investors to have a clearer long-term picture by smoothing out the data. They may look at the 20-day or 50-day to achieve a better grasp of the stock in the near-term. The current moving average for the 50-day is 48.77 and the 200-day is 51.91.

Therefore, we see Las Vegas Sands stock as the only undervalued casino stock. We also believe Las Vegas Sands has the strongest balance sheet. This means it is likely that the company will easily navigate through the ongoing coronavirus crisis and will enjoy a strong recovery whenever the headwind disappears from the horizon. 20 Gambling Stocks: Las Vegas Sands (LVS) Las Vegas Sands Corp. (NYSE:LVS) is the world’s. Jul 22, 2015 Investors in luxury hotel, casino and resort companies like Starwood and MGM earned returns of more than 400%. Even the plain old stock market index more than doubled. Investors may be particularly intrigued by the earnings growth and dividends of the major casino stocks. The 4 major publicly-traded casino stocks all pay dividends to shareholders, but they are far from the safest dividend stocks around. If you are looking for a safer basket of dividend growth stocks, consider the Dividend Aristocrats.

The stock has since surged and the company is having a secondary offering this week. The holding company of online sportsbook and casino operator Argyll Entertainment and its operating support.

The ADX or Average Directional Index is used to discern if the market is currently not trending or trending, and is a technical analysis indicator. Only the ADX measures the trend strength but cannot measure the direction. When the ADX is used with the Minus Directional Indicator and Plus Directional Indicator it can help determine the overall momentum and direction of the trend. The ADX is used by many traders along with other indicators to help locate the proper entry and exit points for trading. Paddy Power Plc ADR’s current 14-day ADX is 13.47. An ADX value from 0-25 is generally an indication of a weak or absent trend. A strong trend has a value of 25-50, a very strong trend is 50-75, and an extremely strong trend is 75-100.

The Relative Strength Index shows 47.73 for the 14-day RSI, 39.22 for the 7-day, and 17.48 for the 3-day for Paddy Power Plc ADR. The RSI or Relative Strength Index is popular as a momentum indicator for technical analysis. This can show if the bears or bulls have the strongest market, and find reversal points with more accuracy. J. Welles Wilder developed the RSI, and a reading above 70 generally shows overbought conditions. Oversold conditions show a reading under 30. Adjustments in the values are necessary for the market and specific stock. Larger market turns can be spotted with the RSI.

Donald Lambert developed the CCI or Commodity Channel Index. This tool is versatile, can help provide extreme condition warnings, and emerging trends. The current price in relation to the average price is measured by the CCI over a specific period. When prices are a lot higher than average, the CCI is fairly high, when prices are far lower than average, the CCI is fairly low. Additional technical indicators like the Williams %R and Williams Percent Range are watched by investors to measure overbought and oversold levels. This indicator provides a comparison between a stock’s closing price and the lows and highs over a specific period. The most common period to look back is 14 days. The oscillation of the Williams %R ranges from 0 to -100. An overbought situation is indicated by a reading of 0 and -20. An oversold situation is indicated by a reading of -80 to -100.

Day traders profit by exploiting the movements for minute price in individual assets. This requires leveraging a lot of capital so the stocks they trade are in play. They have enough volatility to be a good risk, and the reward comes from both bear and bull traders intraday. Volatility is low in most company stocks. They usually move slowly with big price swings occurring a couple times a year through bad or good trading results. A typical day trader looks for trading volume, volatility, and liquidity. Liquidity lets an investor exit or enters a stock with a good price. When the liquidity in a stock is not good, a broker may need some time to negotiate the deal so the stock can be bought or sold. The broker may be unable to get the selling or buying price the trader wants. This represents a problem for day traders and can make the difference between a non-profitable and profitable trade.

The rules for traders regarding what is a good guide and constitutes liquidity are different depending on the volume of shares, and volume of trades traded every day. The minimum for most traders is 100,000 shares traded each day, although some traders require 1,000,000. The gauge for home many times a stock is purchased or sold within a specific period is called trading volume. The ADTV is the average daily trading volume. A lot of interest in a certain stock is a high degree of volume, and a stock boost is the volume of a stock either down or up in regards to a price jump.

Sweden is known for global brands worldwide yet there is much that is not acknowledged. Sweden has one of Europe’s best economies with a healthy commerce and trade environment, and a good corporate governance. The economy’s growth is becoming more influential globally and regionally. It influences company spreads like NetEnt AB ser. B. Sweden has been established as one of the European economy’s most valuable contributors.

Nasdaq Stockholm

The Nasdaq Stockholm or Stockholm Stock Exchange in Sweden is the main stock exchange, nd is in Frihamnen, Stockholm. Like other Nordic nation stock exchanges such as Iceland and Norway, the Nasdaq has operated and owned it since 2008. The Nasdaq Nordic stock exchanges include Nasdaq Iceland or the Iceland Stock Exchange, Nasdaq Baltic or the Tallinn Stock Exchange, Nasdaq Helsinki or the Helsinki Stock Exchange, Nasdaq OMX Armenia or the Armenia Stock Exchange, Nasdaq Copenhagen or the Copenhagen Stock Exchange, and Nasdaq Baltic or the Riga Stock Exchange.

The Nasdaq Stockholm began in 1963, and operated with a floor trading system at the Stockholm Stock Exchange Building until May of 1990. The electronic trading system was established in the country in June of 1990. This helps NetEnt AB ser. B remain there with improvements brought to the market every year. The Nasdaq Stockholm’s regular trading begins at 9:00 a.m. and ends at 5:00 p.m. Over 300 stocks are currently listed on Nasdaq Stockholm with the current total market valuation at $1.26 trillion.

The OMX Stockholm 30 is the benchmark index in Sweden and is a market-capitalization-weighted index. The top 30 stocks listed are tracked on the Nasdaq Stockholm. September of 1986 is the base date with a base value of 125 points. To ensure an accurate and proper indication regarding the Swedish economy, there is a semi-annually rebalancing of the OMXS30. New stocks can be added and old stocks dropped each rebalancing period. This depends on the overall performance and different factors in the equity market. Consumer Services, Financials, and Industrials are the OMXS30’s three largest sectors.

The all-time low for the OMXS30 is 98.96 points, attributed to Black Monday in November of 1987, and equity markets worldwide had tumbled. The meltdown spread worldwide after beginning in Hong Kong. The all-time high of the OMXS30 was 1,719.93 in April of 2015. An increase was additionally received by NetEnt AB ser. B.

The best way to bet on any country’s long-term prospects and growth potential is to penetrate their equity market. Investing in Nasdaq Stockholm stocks is the best way to maximize the nations opportunities and bank on the Swedish economy’s growth.

Stock Disclaimer

This company is a publisher, and no article on this website is intended to be advice for investments. All users must comprehend that all content that is published to this site is neither advice nor a recommendation for one’s investment strategies including but not limited to: transactions, portfolio of securities, or particular securities. Readers also must understand that none of the writers nor affiliates intend to advise any of the site’s visitors at any point in time in any matter including the information written and published on this site.

Readers also need to understand that the published articles on this website will occasionally express opinions that reference securities in products relating to the company. These opinions may or may not differ from opinions obtained by using other products that also relate to the company. Visitors of the site will also need to understand that some writers discuss securities that they are either involved with. If their firm holds a position at the time the article is published, the company will feature a disclosure for the readers.

Site visitors need to know that any contributor may have a position in the securities being written about during any part of the transaction. It is also understood that all data, pricing, and other information is for informational purposes only and data may not always be correct depending on the source being used to find the data. The company will always, however, try to keep information as accurate and up-to-date as possible.

Occasionally, references to previously published information or articles will be made through the company’s marketing materials. These references will likely not be current. Due to the consistent changes of the market, information easily changes and data will be out-of-date. The company will update information as much as possible, but visitors should be wary of changing or incorrect information.

Updated on September 14th, 2020 by Bob Ciura

As the saying goes, the house always wins. Casinos operate strong business models, as casinos earn a virtually guaranteed profit from the sum of the bets they receive. The relatively attractive economics of casinos make the industry worthy of a closer look.

Investors may be particularly intrigued by the earnings growth and dividends of the major casino stocks. The 4 major publicly-traded casino stocks all pay dividends to shareholders, but they are far from the safest dividend stocks around.

If you are looking for a safer basket of dividend growth stocks, consider the Dividend Aristocrats. They are an elite group of 65 stocks in the S&P 500 Index with 25+ years of rising dividends.

You can download an Excel spreadsheet of all 65 Dividend Aristocrats (with important financial metrics such as dividend yields, P/E ratios, and dividend payout ratios) by clicking the link below:

Click here to download your Dividend Aristocrats Excel Spreadsheet List now.

Casinos are not without a fair amount of risk. Casinos are highly vulnerable to recessions, as consumers typically cut back heavily on gaming when the economy enters a downturn. The four major casino stocks saw their earnings collapse during the Great Recession. A similar impact has taken place to start 2020 due to the coronavirus crisis, which has battered the casino industry.

We have analyzed the major casino stocks in the Sure Analysis Research Database, which ranks stocks based upon the combination of their dividend yield, earnings-per-share growth potential and valuation to compute expected total returns. In this article, we will compare the expected 5-year total annual returns of the four major casino stocks.

For this article, stocks are ranked in order of least attractive to most attractive. While 5-year expected returns are incorporated in the rankings, we have also utilized a qualitative screen based on balance sheet strength and overall business quality.

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Casino Industry Overview

The casino industry is in severe distress right now. The spreading coronavirus and resulting global recession have taken their toll on the casino stocks. The large U.S. casinos are heavily reliant on Macau, the largest gaming market in the world and the only market in China where casinos are legal. As a result, these stocks are very sensitive to any developments that affect the gaming activity in Macau.

This was a significant concern several years ago. In 2014, China initiated an anti-corruption regulatory crackdown, which greatly reduced the gaming activity in the area. Fortunately for the casinos, the downturn lasted for approximately two years and gaming activity in Macau recovered thereafter. Then the gaming activity in Macau faced another headwind, namely the trade war between the U.S. and China.

This headwind lasted for only about a year but now Macau is facing its strongest challenge ever, the outbreak of coronavirus, which has caused a huge hit in the gaming business. Casinos were shut down for an extended period due to the coronavirus. Visa restrictions have also added to the decline in gaming activity in Macau.

As a result, gross gaming revenue in Macau plunged 94.5% in August, compared with the same month last year. Gross gaming revenue in Macau declined 81.6% through the first eight months of 2020. The high sensitivity of casino stocks to all the developments related to China and their pronounced cyclicality means that investors should pick casino stocks carefully.

Top Casino Stock #4: Wynn Resorts (WYNN)

Wynn Resorts owns and operates Wynn Macau and the Wynn Palace in Macau, as well as Wynn Las Vegas and Encore in Las Vegas. Since Wynn Resorts is highly leveraged to the gaming activity in Macau, it saw its earnings collapse and it cut its dividend by 62% in 2015-2016 due to the Macau downturn that was caused by the anti-corruption regulatory crackdown in the area. But as Macau strongly recovered in the last three years, Wynn Resorts returned to growth.

Unfortunately, the company is now facing the headwind of coronavirus in all the regions in which it operates. Wynn Resorts reported earnings results for the second quarter on 8/4/2020. Revenue declined 95% year-over-year to $85.7 million, which was $190 million less than expected. The company lost $6.14 per share in the quarter, missing estimates by $1.23. Adjusted property EBITDA was a loss of $322.9 million compared to estimates of a loss of $314 million. This compared unfavorably to adjusted EBITDA of $480.6 million in the second quarter of 2019.

Results for Wynn Resorts were once again severely impacted by the COVID-19 pandemic as properties in Macau were closed for 15 days. Las Vegas operations didn’t open until June 4th.Wynn Palace revenues declined 98.6% as a result. Revenues for Wynn Macau decreased 97.8% while Las Vegas decreased 86% year-over-year. Wynn Resorts suspended its dividend in an effort to conserve capital. Consensus estimates call for a loss of $11.52 per share for 2020.

On the bright side, casinos are gradually reopening, and Wynn Resorts seems to have ample room to grow in the upcoming years thanks to its promising growth pipeline.

Source: Investor Presentation

The company has made progress in the design of Crystal Pavilion in Macau, which will be a major tourist attraction. In addition, Encore Boston Harbor opened in June-2019 and has exhibited strong performance so far so it has promising growth prospects ahead thanks to expected ramp-up in activity.

Moreover, the company has been caught off guard, with total current and long-term debt outstanding of $12.78 billion and cash and cash equivalents of $3.80 billion. Therefore, the stock is carrying an increased amount of risk right now due to its high level of debt.

However, we believe that the coronavirus crisis will not last beyond this year and we view the long-term growth prospects of the company as intact. We expect 4% annual EPS growth through 2025. Using the company’s current assets, return on assets of 5.6% over the last decade and share count, we believe Wynn Resorts has earnings power of $1.89. We will use this figure to calculate fair value and projected return.

Based off of the earnings power estimate for 2020, the stock is currently trading at a P/E ratio of 44, which is higher than its historical average of 30.1. However, the stock traded at abnormally high P/E ratios in some years due to depressed earnings in those years.

For instance, the abnormally rich valuation of the stock during 2015-2017 resulted from the market’s view that the downturn in Macau was temporary. Our target P/E ratio of 18 reflects uncertainty regarding Macau and the coronavirus. If shares reverted to our target P/E by 2025, then valuation would be a 16% headwind to annual returns over this time period.

If the stock reaches our fair valuation level over the next five years, it would reduce shareholder returns by 16%, effectively wiping out earnings growth and dividends over that time period. The stock is markedly volatile due to its high debt load, which is an added risk factor.

As a result, only those who can stomach extreme stock price volatility and have confidence in the ability of Wynn Resorts to navigate through the current crisis should consider buying the stock.

Top Casino Stock #3: MGM Resorts (MGM)

MGM Resorts owns and operates casinos, hotels and conference halls in the U.S. and China. The company has the least exposure to Macau in this group of stocks. As a result, it suffered much less than its peers from the trade war between the U.S. and China and the protests of people in Macau a few months ago.

However, the company is highly exposed to the outbreak of coronavirus, just like its peers. Due to the rapid spread of the coronavirus, MGM Resorts suspended all its casino operations in Las Vegas on March 16th and did not accept hotel reservations for the dates prior to May 1st. The company also closed its casino in Maryland.

In late July, MGM Resorts reported (7/30/20) financial results for the second quarter of fiscal 2020. The company began reopening its U.S.properties in the quarter but its revenue plunged -91% over last year’s quarter due to the suspension of the operations of the company in the U.S. and a collapse in gaming revenues in Macau caused by travel restrictions and social distancing.

Source: Investor Presentation

As a result, MGM Resorts switched from a profit of $0.23 per share in last year’s quarter to an adjusted loss of -$1.52 per share.

Due to the unprecedented downturn that has resulted from the pandemic, MGM Resorts cut its dividend by 98% in April. Moreover, in May, it issued $750 million of 5-year bonds at 6.750%. The high interest rate reflects the desperation of the company for funds and the high debt load of the company. Net debt is $20.0 billion, which is nearly twice the current market cap of the stock.

On the positive side, on August 20th, 2020, IAC (IAC) reported a 12% stake in MGM Resorts for approximately $1 billion. IAC has a portfolio of brands and digital expertise, which is expected to help MGM Resorts leverage its digital assets. IAC will join the Board of Directors of MGM Resorts. The stock jumped 12% on the announcement.

Nevertheless, due to the headwind of coronavirus, along with a huge debt load, shareholders should not expect a material boost in dividends and share repurchases for the foreseeable future. That said, the company has a positive long-term outlook for conventions and sports betting in the domestic market, as well as the ramp-up of the recently-built MGM Cotai resort, MGM Springfield, and Park MGM.

As soon as the coronavirus crisis comes to an end, MGM Resorts will benefit from these growth drivers. The company will also enhance its earnings growth via its initiative “MGM 2020”, which aims to expand margins by reducing operating costs and enhancing the efficiency of the company.

Due to the headwind from coronavirus, we expect MGM Resorts to report a net loss in 2020. Earnings-per-share are expected to gradually turn positive, with expected annual growth of 5% through 2025. After the massive dividend reduction, returns from dividends will be negligible until the full dividend is restored. Finally, a contracting valuation multiple could be an additional headwind for shareholders. Overall, we expect negative total returns in the mid-single-digits over the next five years.

Top Casino Stock #2: Melco Resorts (MLCO)

Melco Resorts owns and operates casino gaming and entertainment casino resort facilities in Asia. As Melco Resorts is the most leveraged to the gaming activity in Macau in this group of stocks, it is the most vulnerable company to the downturn in the area due to the outbreak of coronavirus.

Melco Resorts will greatly benefit as the US slowly returns to a more ‘normal’ level of activity as COVID-19 fears and cases hopefully decline. A COVID-19 vaccine would likely be a major boost for the company.

In 2019, Melco Resorts grew its revenue 11% and its earnings per share 15%, primarily thanks to its strong performance in the mass market table gaming activity. But conditions have predictably reversed, with second-quarter revenue declining 88% and adjusted property EBITDA declining to a loss of $156.3 million.

Source: Investor Presentation

As soon as the effect of coronavirus begins to fade, the company has promising growth prospects ahead. It will benefit from the ramp-up of activity in its Morpheus Resort, which opened in mid-2018, and attract an increasing number of visitors in Cotai thanks to improvements in mass transportation.

Melco Resorts is also expanding its City of Dreams in Macau and is taking steps to open an integrated resort in Yokohama, Japan. All these initiatives are likely to be significant growth drivers as soon as Macau returns to normal.

On the other hand, due to its extreme leverage to gaming activity in Macau, the stock is highly vulnerable to any negative development related to coronavirus. Therefore, despite the promising growth prospects, we hold modest expectations for Melco, due to its extreme leverage to the activity in Macau.

It is worth noting that the gaming activity in the area was facing another headwind, protests from civilians, before the outbreak of coronavirus. Overall, we expect 2% average annual growth in earnings per share over the next five years.

The company is expected to post a significant loss for 2020. Earnings-per-share are expected to recover to $0.11 in 2021 and $1.08 in 2022. In a normalized economic backdrop, this would mean the stock trades for a P/E ratio of approximately 18, based on 2022 earnings. We view the stock as fairly valued.

Therefore, shareholder returns will be fueled by earnings-per-share growth. The stock had a 4%+ yield recently, but the company has suspended its dividend for the foreseeable future in an effort to preserve cash. Therefore, total returns are expected at just ~2% per year until the dividend is restored.

Given its healthy balance sheet, the company is likely to resume paying dividends once the coronavirus crisis ends. On the other hand, income-oriented investors should remain cautious, as the company is highly vulnerable to economic downturns and is very sensitive to any casino-related policy change in China and the ongoing coronavirus crisis.

Top Casino Stock #1: Las Vegas Sands (LVS)

Las Vegas Sands is a leading developer and operator of integrated resorts in the U.S. and Asia. Due to the outbreak of coronavirus, Las Vegas Sands is facing strong headwinds in Macau and in the U.S. As mentioned above, gaming activity has collapsed in Macau. In addition, due to the propagation of the virus in the U.S., all the casinos in Las Vegas were closed for a considerable period. As a result, Las Vegas Sands will incur a significant hit to its earnings this year.

On the other hand, beyond this year, Las Vegas Sands has promising growth prospects ahead. As Japan legalized casino gambling three years ago, Las Vegas Sands has announced that it intends to open integrated resorts in Tokyo and Yokohama. The company is the favorite bidder in this contest, which is expected to be a significant growth driver, though it will take a few years until the company earns a license and builds its new properties in Japan.

Not only do we see potential for strong earnings growth along with a high dividend yield for this stock, Las Vegas Sands also earns the top ranking because of its strong balance sheet and healthy liquidity.

Source: Investor Presentation

Furthermore, Las Vegan Sands continues to pursue growth by expanding and upgrading its Macau properties. The company launched Four Seasons Tower Suites Macao last year and it expects to perform its grand opening this year while it also expects to launch the Londoner Macao within 2020-2021 and expand Marina Bay Sands in Singapore.

In addition, Las Vegas Sands will benefit from the debut of the light rail system connecting Macau to the entire China rail network. This project will significantly increase the traffic to the casinos in Macau. Thanks to all these growth drivers and given the suppressed earnings expected this year, we expect the company to grow its earnings per share by about 4% per year over the next five years.

Las Vegas Sands stock previously offered a hefty dividend of $3.08 per share annualized, but the company suspended its dividend in 2020 amid the coronavirus pandemic. If the company were to reinstate its dividend at the same level, shares would yield nearly 6% at the current stock price.

The company is expected to see earnings dry up in 2020; our estimate of its full earnings power in a normal economy is annual earnings-per-share of $3.20. Based on this, the stock has a price-to-earnings ratio of 16.6, which is lower than our fair value estimate of around 17.0. Therefore, we see Las Vegas Sands stock as the only undervalued casino stock.

We also believe Las Vegas Sands has the strongest balance sheet. This means it is likely that the company will easily navigate through the ongoing coronavirus crisis and will enjoy a strong recovery whenever the headwind disappears from the horizon.

Final Thoughts

Gaming activity in Macau enjoyed a strong recovery from 2017-2019. But the coronavirus pandemic brought the recovery to a halt. Macau is now facing another severe downturn, due to the outbreak. The same is true for the U.S. as well, as the coronavirus crisis has resulted in weak demand. As a result, all the above casino stocks are going through a fierce downturn right now.

Melco Resorts seems the least attractive choice whereas Las Vegas Sands has by far the most attractive risk/reward profile. Wynn Resorts and MGM Resorts offer a lower expected return than Las Vegas Sands. Additionally, we prefer Las Vegan Sands for its stronger balance sheet, which is paramount during severe downturns.

While we expect the coronavirus crisis to end later this year, no one is absolutely sure when this crisis will end. To provide a perspective for the severity of the downturn, all the U.S. casino companies asked Congress for emergency financial help, as several industries have been impacted by coronavirus. Certain gaming regions like Las Vegas are preparing to reopen, which would be a major positive step for the casinos.