In this article, we discuss the 5 best sin stocks to invest in 2024. To read the detailed analysis of the sin stocks, go directly to the 12 Best Sin Stocks To Invest in 2024.
5. Las Vegas Sands Corp. (NYSE:LVS)
Number of Hedge Fund Holders: 45
Las Vegas Sands Corp. (NYSE:LVS) develops and runs destination properties all over the world, including gambling and entertainment facilities, accommodations, and more.
On December 14, JPMorgan analyst Joseph Greff lowered the price target on Las Vegas Sands Corp. (NYSE:LVS)’s stock to $56 from $64 and maintained an Overweight rating on the shares.
Out of the 12 Wall Street analysts that covered Las Vegas Sands Corp. (NYSE:LVS), 10 kept a Buy rating on the stock. At the time of writing on December 14, the average price target of $64.33 represented an upside of 32.34%.
Baron Funds commented on Las Vegas Sands Corp. (NYSE:LVS) in its first quarter 2023 investor letter. Here is what it said:
“In the first quarter of 2023, we re-acquired shares in Macau-centric casino gaming companies Wynn Resorts, Limited and Las Vegas Sands Corp. (NYSE:LVS) with the following considerations in mind:
Since the early days of the COVID-19 pandemic in 2020 through mid-2022, the shares of Wynn and Las Vegas Sands significantly underperformed the share price performance of other U.S.-centric casino gaming and lodging companies due in large part to extremely limited travel mobility to Macau during China’s Zero-COVID policy. Just as business activity and the shares of U.S.-centric casino gaming companies rebounded sharply once people felt comfortable to travel to Las Vegas and other U.S. regional gaming markets, we have felt that Macau business activity and the shares of Macau-centric casino gaming companies would follow in the footsteps of Las Vegas-centric and other U.S. gaming and lodging companies and inflect positively once people were permitted to travel to Macau more freely.
China recently abandoned it’s Zero-COVID policy and removed travel restrictions in January 2023. We now believe both Wynn and Las Vegas Sands are well positioned to capitalize on China’s reopening.
For Las Vegas Sands, we believe additional drivers for future value creation beyond a re-emergence in Macau business activity include: (i) our expectation for a continued positive inflection in visitation and cash flow at Marina Bay Sands, Singapore; (ii) Las Vegas Sands’ plans to invest $4.5 billion in Macau and Singapore in the next 10 years; (iii) the company’s plans to pursue a New York casino and its prioritization of Texas as a new market; and (iv) the possibility that Las Vegas Sands reinstates its dividend in the next few years…” (Click here to read the full text)
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4. MGM Resorts International (NYSE:MGM)
Number of Hedge Fund Holders: 47
MGM Resorts International (NYSE:MGM) is one of the top hospitality companies and is the owner and operator of casino and non-casino resort projects in the U.S., China, and Japan.
According to Insider Monkey’s database that tracks 910 elite hedge funds, 47 funds had investments in MGM Resorts International (NYSE:MGM)’s stock in the third quarter. With 6.42 million shares worth $236.138 million Keith Meister’s Corvex Capital was the biggest investor in the company.
MGM Resorts International (NYSE:MGM) was mentioned in Longleaf Partners’ third quarter 2023 investor letter. Here is what it said:
“Digital holding company IAC was the largest detractor in the quarter after reporting weak earnings, particularly at underlying holding Angi, which represents a relatively small (single-digit %) proportion of the value but has an outsized impact on IAC’s stock price. Casino and online gaming company MGM Resorts International (NYSE:MGM) (which we also own directly and was a detractor in the quarter) comprises the largest portion of the IAC value. MGM faced multiple headwinds this quarter with a cyberattack that impacted all its properties and pending labor strikes in Las Vegas. Even with these events factored into our appraisal, MGM remains highly discounted today, and management is taking advantage of the price weakness to add value through meaningful share repurchase.”
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3. Constellation Brands, Inc. (NYSE:STZ)
Number of Hedge Fund Holders: 50
Constellation Brands, Inc. (NYSE:STZ) is a New York-based company that produces and sells beer, wine, and spirits under various brands, including Corona Familiar, Mount Veeder, Ruffino, and others.
On December 1, Goldman Sachs made Constellation Brands, Inc. (NYSE:STZ) a part of the firm’s Conviction Buy List. The firm maintained a Buy rating on the shares with a $290 price target. The analyst mentioned his conviction in the beer distribution opportunity and expectation of stability in the company’s wine business.
Constellation Brands, Inc. (NYSE:STZ) was covered by 20 Wall Street analysts over the last three months, and 17 kept a Buy rating on the stock. The average price target of $291.89 had an upside of 21.10% at the time of writing on December 14.
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2. Caesars Entertainment, Inc. (NASDAQ:CZR)
Number of Hedge Fund Holders: 56
Caesars Entertainment, Inc. (NASDAQ:CZR), previously Eldorado Resorts, Inc., provides gaming and hospitality services through more than 50 destinations.
In the third quarter, the number of hedge fund investors in Caesars Entertainment, Inc. (NASDAQ:CZR) went down compared to Q2, but the total stake value increased to $1.27 billion in Q3 from $1.155 billion in Q2. One of the top stakeholders of the company was billionaire Ken Griffin’s Citadel Investment Group. The firm increased its stake in the stock by 1797% to 2.9 million shares worth $135.054 million.
On December 13, TD Cowen lowered the price target on Caesars Entertainment, Inc. (NASDAQ:CZR)’s stock to $63 from $76 and kept an Outperform rating. Despite the decreased price target, the analyst mentioned that the firm is confident about the company’s fundamentals.
Baron Funds mentioned Caesars Entertainment, Inc. (NASDAQ:CZR) in its first quarter 2023 investor letter. Here is what it said:
“In the most recent quarter, we reduced our investment in Caesars Entertainment, Inc. (NASDAQ:CZR), the largest casino-entertainment company in the U.S. and one of the world’s most diversified casino-entertainment providers. We chose to modestly reduce our significant exposure in travel-related real estate companies and reallocated the capital to other non-travel related real estate companies. We are big fans of CEO Tom Reeg and remain optimistic about the long-term prospects for the company.”
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1. Philip Morris International Inc. (NYSE:PM)
Number of Hedge Fund Holders: 62
Philip Morris International Inc. (NYSE:PM) is a famous tobacco products manufacturer and distributor that sells its products under the brands of Marlboro, Parliament, Virginia S., L&M, Lark, Merit, and others.
On December 7, Philip Morris International Inc. (NYSE:PM) declared a quarterly dividend of $1.30, payable by January 10 to the shareholders of record on December 21. The stock’s dividend yield was 5.49% at the time of writing on December 14.
Over the last three months, Philip Morris International Inc. (NYSE:PM) was covered by 11 Wall Street analysts, and 9 kept a Buy rating on the stock. The average price target of $107.59 represented an upside of 13.65% at the time of writing on December 14.
Ariel Investments commented on Philip Morris International Inc. (NYSE:PM) in its first-quarter 2023 investor letter. Here is what it said:
“Finally, tobacco maker, Philip Morris International Inc. (NYSE:PM) declined in the period on concerns related to supply-chain disruptions resulting from the war in Ukraine, which we view as temporary. We believe the favorable economics and margin expansion associated with market share gains from the IQOS brand and Reduced Risk Products should yield value creation opportunities in the years ahead. Furthermore, at current trading levels, we think the company’s operating leverage, pricing power, and free cash flow profile offer a margin of safety.”
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You can also look at the 15 Best Motorcycle Insurance Companies Heading into 2024 and the 12 Best Growth Stocks to Buy Today According to Billionaire Ken Fisher.
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