Top Casino Stocks for Q3 2021

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The casino sector is one part of the broader gaming industry focused on leisure and resort properties and casino gaming activities. Companies in the sector own and operate casinos, resorts, hotels, ski facilities, and racetracks worldwide. The sector also includes companies involved in online gambling. Big-name casino companies in the sector include Las Vegas Sands Corp. (LVS), Wynn Resorts Ltd. (WYNN), and MGM Resorts International (MGM). Many companies with large physical casinos have experienced dramatic declines in revenue and earnings over the past year due to the COVID-19 pandemic, having to shut down properties in response to the health crisis. Online gambling, however, has surged as rising numbers of consumers shelter at home.

The VanEck Vectors Gaming ETF (BJK) is used as a benchmark to gauge the performance of the casino industry. However, investors should note that it includes non-casino gambling stocks that have different investment characteristics, such as DraftKings Inc. (DKNG), an online sports betting company. BJK has outperformed the broader market, providing investors with a total return of 48.7% compared to the Russell 1000’s total return of 35.7% over the past 12 months. These market performance numbers and the statistics in the tables below are as of June 9, 2021.

Here are the top 3 casino stocks with the best value, fastest growth, and most momentum.

These are the casino stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.

Best Value Casino Stocks
  Price ($) Market Cap ($B) 12-Month Trailing P/E Ratio
Boyd Gaming Corp. ( BYD) 62.40 7.0 62.4
Vail Resorts Inc. ( MTN) 319.94 12.9 118.5
Full House Resorts Inc. ( FLL) 10.44 0.4 522.0

Source: YCharts

  • Boyd Gaming Corp.: Boyd Gaming owns and operates a number of gaming properties. It also operates entertainment, restaurants, shopping, and recreational facilities on its properties.
  • Vail Resorts Inc.: Vail Resorts operates mountain resorts and urban ski areas in the U.S. and several other countries. Its resorts include ski mountain complexes, family-oriented mountain resorts, destination resorts with apres-ski activities, and year-round family vacation destinations.
  • Full House Resorts Inc.: Full House Resorts owns, develops, and manages casinos and related hospitality and entertainment facilities throughout the U.S. The company announced in May financial results for Q1 of its 2021 fiscal year (FY), the three-month period ended March 31, 2021. Full House’s net loss narrowed to $3.4 million from $4.4 million in the year-ago quarter, and revenue rose 36.8%.

These are the top casino stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly YOY percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers.

Fastest Growing Casino Stocks
  Price ($) Market Cap ($B) EPS Growth (%) Revenue Growth (%)
Caesars Entertainment Inc. ( CZR) 110.83 23.1 N/A (see company description) 259.2
Ballys Corp. ( BALY) 53.70 2.4 N/A (see company description) 76.2
Full House Resorts Inc. (FLL) 10.44 0.4 N/A (see company description) 36.8

Source: YCharts

  • Caesars Entertainment Inc.: Caesars Entertainment owns and operates a chain of resorts throughout the U.S. It offers casino, poker, roulette, and other gaming facilities. The company also provides food and beverage services. Caesars Entertainment announced in early May financial results for Q1 FY 2021, which ended March 31, 2021. The company’s net loss widened to $424 million from $176 million in the year-ago quarter. Because the company posted a net loss for the most recent quarter, we cannot calculate an EPS growth rate for the table above. Revenue for the quarter rose 259.2%.
  • Bally’s Corp.: Bally’s owns and manages hotels offering amenities such as casinos, retail outlets, sports bars, pubs, dining, and accommodation. The company also owns and manages a horse racetrack. Bally’s recently announced that it has completed its acquisition of the Tropicana Evansville casino operations from Caesars Entertainment for $140 million. The agreement to acquire the casino was first announced on Oct. 27, 2020. Because the company posted a net loss for the most recent quarter we cannot calculate an EPS growth rate for the table above.
  • Full House Resorts Inc.: See above for company description. Because the company posted a net loss for the most recent quarter we cannot calculate an EPS growth rate for the table above.

These are the casino stocks that had the highest total return over the last 12 months.

Casino Stocks with the Most Momentum
  Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
Full House Resorts Inc. (FLL) 10.44 0.4 416.8
Golden Entertainment Inc. ( GDEN) 45.95 1.3 237.7
Red Rock Resorts Inc. ( RRR) 44.20 5.2 198.2
Russell 1000 N/A N/A 35.7
VanEck Vectors Gaming ETF (BJK) N/A N/A 48.7

Source: YCharts

  • Full House Resorts Inc.: See above for company description.
  • Golden Entertainment Inc.: Golden Entertainment operates as a diversified gaming company. It owns and operates resorts and casinos, pubs and taverns, and distributed gaming. The company announced in early May financial results for Q1 FY 2021, which ended March 31, 2021. It posted net income of $10.6 million, a significant turnaround from the $32.6 million net loss reported in the year-ago quarter. Quarterly revenue rose 15.7%.
  • Red Rock Resorts Inc.: Red Rock Resorts operates as a gaming, development, and management company. It owns and manages casino and entertainment properties, including restaurants, movie theaters, bowling, casino gaming, and more.

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Source: Investopedia