5 Best Las Vegas Stocks To Buy Now

In this piece we will take a look at the five best Las Vegas stocks to buy now. For more stocks, head on to 10 Best Las Vegas Stocks To Buy Now.

5. PENN Entertainment, Inc. (NASDAQ:PENN)

Number of Hedge Fund Holders: 36

PENN Entertainment, Inc. (NASDAQ:PENN) is an integrated gaming, casino, and entertainment provider that has facilities all over the U.S. These include its Tropicana Las Vegas Casino and Hotel and the firm is headquartered in Wyomissing, Pennsylvania.

PENN Entertainment, Inc. (NASDAQ:PENN) has the opportunity to emerge as a big winner from the state of Massachusetts’s decision to legalize betting on professional and college sports. This will allow the company to receive one of seven mobile betting platform licenses in the state. The company has consistently grown both its EBIT and EBITDA margins over the past three years, and it has a lower P/E ratio of 14x when compared to the industry average of 18x, indicating that PENN Entertainment, Inc. (NASDAQ:PENN) is undervalued.

Barclays raised PENN Entertainment, Inc. (NASDAQ:PENN)’s share price target to $44 from $37 in August 2022, sharing that the firm’s latest earnings results were solid. Of the 912 hedge funds surveyed by Insider Monkey for this year’s first quarter, 36 had invested in the company.

PENN Entertainment, Inc. (NASDAQ:PENN)’s largest investor is Jim Simons’s Renaissance Technologies which owns 1.7 million shares that are worth $75 million.

Baron Funds mentioned the company in its first quarter of 2022 investor letter and stated that:

“Penn declined 18.2% in the quarter and penalized performance by 54 basis points. This was due to investor concerns over continuing losses from its Barstool business. We believe the $50 million of losses this year from its digital business is modest in relation to Penn’s $1 billion of brick and mortar EBITDA. The losses from its digital business represent customer acquisition costs incurred as additional states legalize online gambling. Since it is far less expensive to retain existing customers than to acquire new ones, we expect marketing costs to decline as Penn builds its customer base. Penn’s core bricks and mortar casino business remains strong, and the company has a healthy regional casino business and a strong balance sheet to fund digital losses.”