Is Red Rock Resorts (RRR)’s Stock Price Compelling?

Baron Funds, an investment management company, released its “Baron Real Estate Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 4.86% (Institutional Shares) compared to a 4.99% decline for its primary benchmark, the MSCI USA IMI Extended Real Estate Index. At the same time, the fund outperformed the MSCI US REIT Index, which fell 10.28% in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron Funds highlighted stocks like Red Rock Resorts, Inc. (NASDAQ:RRR) in the Q3 2022 investor letter. Headquartered in Las Vegas, Nevada, Red Rock Resorts, Inc. (NASDAQ:RRR) is a US-based casinos and entertainment properties operator. On November 21, 2022, Red Rock Resorts, Inc. (NASDAQ:RRR) stock closed at $42.49 per share. One-month return of Red Rock Resorts, Inc. (NASDAQ:RRR) was 7.46% and its shares lost 11.70% of their value over the last 52 weeks. Red Rock Resorts, Inc. (NASDAQ:RRR) has a market capitalization of $2.464 billion.

Baron Funds made the following comment about Red Rock Resorts, Inc. (NASDAQ:RRR) in its Q3 2022 investor letter:

Red Rock Resorts, Inc. (NASDAQ:RRR) is a leading real estate casino gaming company that owns and operates 100% of its real estate assets. The majority of the company’s cash flow is generated in the Las Vegas Locals market, a real estate market that possesses highly favorable long-term demand and supply prospects. The company has capacity to double the size of its business in the next five to seven years and maintains a strong balance sheet. Insiders own more than 40% of the company. With shares valued at only 8 times 2023 estimated cash flow (EBITDA) and a double-digit free cash flow yield, we think Red Rock’s share price is compelling.”

Red Rock Resorts, Inc. (NASDAQ:RRR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Red Rock Resorts, Inc. (NASDAQ:RRR)  at the end of the third quarter which was 21 in the previous quarter.

We discussed Red Rock Resorts, Inc. (NASDAQ:RRR) in another article and shared Baron Funds’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

Disclosure: None. This article is originally published at Insider Monkey.