5 Best Gambling Stocks to Buy Now

3. MGM Resorts International (NYSE:MGM)

Number of Hedge Fund Holders: 57

MGM Resorts International (NYSE:MGM) is an American hospitality and entertainment company. The company operates in various areas worldwide such as Las Vegas, Massachusetts, New Jersey, Maryland, and more. MGM ranks 3rd on our list of the best gambling stocks to buy now.

This June, JPMorgan kept an Overweight rating on MGM Resorts International (NYSE:MGM) and raised the price target to $52 from $47. Analyst Joseph Greff made optimistic comments with the “multiple catalysts ahead” throughout the football season.

In the first quarter of 2021, MGM Resorts International (NYSE:MGM) had an EPS of $0.68, lower than consensus estimates of $0.85. while its revenue was $1.6 billion, up from the previous quarter of $1.5 billion. MGM Resorts International (NYSE:MGM) has gained about 122% in the past 12 months and 24% year to date as well.

By the end of the first quarter of 2021, 57 hedge funds out of the 866 tracked by Insider Monkey held stakes in MGM Resorts International (NYSE:MGM) worth roughly $2.71 billion. 

Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, mentioned MGM Resorts International (NYSE:MGM) in its Q1 2021 investor letter:

“MGM (21%, 1.44%), the casino and online gaming company, also contributed to the Fund’s strong returns. MGM’s Las Vegas properties performed particularly well during the fourth quarter, with October marking the best month since pre-COVID February, positive quarterly EBITDA and strong 2021 bookings. MGM’s online gaming and sportsbetting app, BetMGM, is one of the leaders in US online gaming, with a better market share in the more profitable iGaming than in the higher profile but lower margin sports gaming. MGM has demonstrated high conversion rates of its hotel guests and we believe that, with Barry Diller’s help, they will build a competitive long-term advantage with lower customer acquisition costs. MGM’s Macau subsidiary, MGM China, also appreciated as the Macau market partially reopened. We believe there is significant additional upside for the Macau business over the medium-to-long term.”