It would be easy to think that casino stocks would have a rough year, considering everything going on in the macroeconomic environment. But several casino stocks were up in Thursday afternoon’s trading thanks to some solid numbers. It turns out that gambling was a pretty big deal in 2023. Casinos with Las Vegas Strip locations—like Caesars, Wynn, and MGM—all saw gaming win revenue jump by a combined total of roughly 23% against this time last year.
Meanwhile, throughout Nevada, gaming win revenue was up around 13%. November got a particularly nice boost owing to the Formula One Las Vegas Grand Prix, a debut event that came with a few headaches of its own but meant a nice boost to hotels and casinos in the immediate area. In fact, reports note that Caesars, MGM, and Wynn all came up positive for 2023 despite soaring inflation and job concerns.
Only Boyd Gaming (NYSE:BYD) faltered in the afternoon’s trading session, down fractionally. Meanwhile, Las Vegas Sands (NYSE:LVS), Caesars Entertainment (NASDAQ:CZR), MGM Resorts (NYSE:MGM), and Wynn Resorts (NASDAQ:WYNN) all were up to varying degrees in the session.
Internal Pressures are Also Making Diamonds
Pressure makes diamonds, so the old saying goes, and for casino stocks, that’s also proving to be the case. One recent move at Penn Entertainment (NASDAQ:PENN) is catching investors’ eyes and giving something of a halo effect to much of the gaming industry. Reports noted that one of Penn’s biggest shareholders was looking to grab seats on the board. Plus, with signs that the Macau recovery is holding out, meaning that Chinese gamblers are able to pour in their input, Macau can continue to produce cash flow for casino stocks as well.
Which Casino Stocks are a Good Buy Right Now?
Turning to Wall Street, there are certainly several good options, given that each of the five listed today are considered Strong Buys by analysts. However, even here, differences emerge. BYD stock is the current laggard, with a 19.25% upside potential against an average price target of $74.70. Meanwhile, LVS stock is the leader by a narrow margin, as its $63.38 average price target gives it a 29.16% upside potential.
