The news was good for casino stocks, but oddly enough, not good enough. Despite landing a nice piece of positive news ahead of the Super Bowl–which this year is taking place in Las Vegas–most casino stocks dipped lower in Monday afternoon’s trading. The good news in question was a massive bullet dodged, as several hotel properties in downtown Las Vegas have reached a tentative agreement with a hospitality workers’ union, which also called off a strike deadline at another hotel.
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Virgin Hotel will be getting more time to broker a deal, and there should be such a deal ready to go in a few weeks. Several casinos—including Wynn, Caesars, and MGM—all set up deals before 2023 ended, which kept this from being much of a problem for them. Now, several hotels and casinos won’t be facing strikes and walkouts as the Super Bowl approaches.
Still, Golden Entertainment (NASDAQ:GDEN), Penn National (NASDAQ:PENN), and MGM Resorts (NYSE:MGM) were down fractionally, while Caesars Entertainment (NASDAQ:CZR) was down modestly. Bally’s (NYSE:BALY) plunged over 4% in Monday afternoon’s trading, while Wynn Resorts (NASDAQ:WYNN) bucked the trend to gain fractionally.
Which Casino Stocks Are a Good Buy Right Now?
Turning to Wall Street, the laggard in the casino sector is GDEN stock. This Hold-rated stock boasts just a 5.15% upside potential against its average price target of $40 per share. Meanwhile, CZR stock is the leader, as this Strong Buy offers a 43.59% upside potential against its $61.50 price target.
