In this article we will take a look at the 5 best Las Vegas stocks to buy now. For a detailed analysis of these companies, go directly to the 10 Best Las Vegas Stocks to Buy Now.
5. Scientific Games Corporation (NASDAQ: SGMS)
Number of Hedge Fund Holders: 23
Scientific Games Corporation (NASDAQ: SGMS) is a Las Vegas-based company providing game products and services to the gambling industry in Nevada. It was founded in 1984 and is placed fifth on our list of 10 best Las Vegas stocks to buy now. Some of the products sold by the firm include electronic table systems, video lottery terminals, conversion game kits, game machine spare parts, slots, and table-management systems.
In March, Scientific Games Corporation was given a Buy rating by Union Gaming with a price target of $65. Union said that there were early signs of a turnaround in the gaming industry and free cash flow was catching stride. On April 15, the company named a new technology chief, Victor Blanco, who has previously served with big technology companies.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Fine Capital Partners is a leading shareholder in the firm with 9.1 million shares worth more than $378 million.
4. Wynn Resorts, Limited (NASDAQ: WYNN)
Number of Hedge Fund Holders: 52
Wynn Resorts, Limited (NASDAQ: WYNN) is a Las Vegas-based corporation that owns and operates luxury hotels and casinos. It runs the Wynn Macau, the Wynn Palace, and multiple properties in Las Vegas and Boston. The company was founded in 2002 and is placed fourth on our list of 10 best Las Vegas stocks to buy now. The firm operates more than 5,000 slot machines scattered around the establishments it controls, and the hotels it owns house more than a different kinds of food and beverage brands.
Investment advisory Argus on April 4 upgraded the rating on Wynn Resorts, Limited stock and assigned it a price target of $50. Argus said that the expected recovery of the gaming sector in Vegas and Boston because of the increase in leisure travel drove the upgrade.
At the end of the fourth quarter of 2020, 52 hedge funds in the database of Insider Monkey held stakes worth $1.1 million in the firm, up from 43 in the preceding quarter worth $510 million.
3. Caesars Entertainment, Inc. (NASDAQ: CZR)
Number of Hedge Fund Holders: 71
Caesars Entertainment, Inc. (NASDAQ: CZR) is a Reno-based casino and hotel company. It is ranked third on our list of 10 best Las Vegas stocks to buy now. It has a market cap of $21 billion and posted annual revenue of close to $3.5 billion in 2020 despite the pandemic. The firm owns and runs more than 50 hotel and casino properties in 16 US states. It is one of the oldest casino firms in the US and operates several bars and nightclubs. The company offers staffing and management services to other brands as well.
Caesars Entertainment, Inc. (NASDAQ: CZR) stock rallied on April 20 after a UK court ruled in its favor in a deal related to the acquisition of William Hill. Investment advisory upgraded the rating of Caesars stock after the ruling and said the purchase would be a strong strategic and financial bet for the casino company.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Gotham Asset Management was a leading shareholder in the firm with 13,000 shares worth more than $792,000.
2. MGM Resorts International (NYSE: MGM)
Number of Hedge Fund Holders: 44
MGM Resorts International (NYSE: MGM) is a Las Vegas-based hospitality and entertainment firm that runs several destination resorts. The company owns and operates properties in Las Vegas, Massachusetts, Detroit, Mississippi, Maryland, and New Jersey. Some of the famous outlets it manages include the Bellagio, Mandalay Bay, MGM Grand, and Park MGM. The firm was founded in 1986 and is placed second on our list of 10 best Las Vegas stocks to buy now. It runs almost 30 hotels and resorts in total.
MGM Resorts International (NYSE: MGM) has been trading over the past few weeks on the back of bullish ratings from analysts and a consistent spike in occupancy rates at its hotels. On April 29, the firm announced that the hotel occupancy rate hovered around 62% in March but had jumped up to 73% in April, driving the post-pandemic recovery for the company.
At the end of the fourth quarter of 2020, 44 hedge funds in the database of Insider Monkey held stakes worth $2.1 billion in the firm, up from 41 in the preceding quarter worth $1.2 billion.
In their Q1 2021 investor letter, Longleaf Partners Fund highlighted a few stocks and MGM Resorts International (NYSE:MGM) is one of them. Here is what the fund said:
“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.”
1. Las Vegas Sands Corp. (NYSE: LVS)
Number of Hedge Fund Holders: 63
Las Vegas Sands Corp. (NYSE: LVS) is a Last Vegas-based casino firm that was founded in 1988. It is ranked first on our list of 10 best Las Vegas stocks to buy now. The firm has extensive business interests outside of the United States, specially in Macau and Singapore. The firm runs the famous Four Seasons Hotel in Macau. It also runs malls, entertainment venues, celebrity chef restaurants, and gaming centers across the US. It has a market cap of more than $47 billion.
On April 22, Las Vegas Sands Corp. (NYSE: LVS) was given a Neutral rating by Bank of America due to the slow pace of COVID-19 recovery in Macau. However, the Nevada-based sector of the gambling industry seems to have recovered from the pandemic lows and posted more than $1 billion in winnings in March, up 76% to the previous year.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Melvin Capital Management is a leading shareholder in the firm with 10.5 million shares worth more than $629 million.
You can also take a peek at 10 Best Travel Stocks to Buy Right Now, and 10 Best Automotive Stocks to Invest in Now.
