It would be easy to think that casino stocks would have a tough time right now as things look a bit down economically amid still-high inflation and interest rates. A new report out of Macau, however, says that things are looking bright in that corner of the world.
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Casino stocks turned out mixed as a result, with Boyd Gaming (NYSE:BYD) down fractionally and MGM Resorts (NYSE:MGM) down nearly 6.5%. Meanwhile, Wynn Resorts (NASDAQ:WYNN) and Caesars Entertainment (NASDAQ:CZR) were up fractionally, and Bally’s Corporation (NYSE:BALY) was up over 2% in Wednesday afternoon’s trading.
The news, in general, was a welcome one for gambling, particularly for gambling in the Asian market. The Lunar New Year period still has a few days left, and Macau is on track to see over one million visitors before it’s all said and done. Further, reports note that the hotel occupancy rate is currently running at 97%. Macau managed to reach the highest daily visitor arrival number that it had seen since the pandemic, coming in at 217,448 on February 12. It even managed to clear the second-highest number the place had ever seen, as the current record stands at 226,326 from February 2019.
Revenue Is on the Rise, Too
This by itself is welcome news, especially for those who thought the market might be a bit depressed given the macroeconomic headwinds for anything that isn’t an immediate necessity. In fact, a recent report from the Gaming Inspection and Coordination Bureau—a regional authority—revealed that gross gambling revenue was up 67% in January 2024 compared to January 2023. For reference, consensus expectations looked for a rise of 63.3%. That’s good news for Macau casinos and for gambling in general.
Which Casino Stocks Are a Good Buy Right Now?
Turning to Wall Street, WYNN stock is the laggard in the field, as this Moderate Buy stock with an average price target of $116.88 offers investors an 11.08% upside potential. Meanwhile, CZR stock is the leader, as this Strong Buy offers investors a 44.4% upside potential against its average price target of $61.50.
