If you are looking for a high-risk, high-reward investment opportunity, you might want to consider casino stocks. The casino industry has been hit hard by the COVID-19 pandemic, but it is also expected to bounce back strongly as travel and entertainment restrictions ease. Here are five casino stocks that could offer attractive returns in 2023 and beyond.
1. Las Vegas Sands (NYSE: LVS)
Las Vegas Sands is the largest casino operator in the world by revenue, with properties in Las Vegas, Macau, Singapore, and other markets. The company has a strong balance sheet, a diversified portfolio, and a dominant position in the lucrative Asian gaming market. Las Vegas Sands also pays a generous dividend of 4.2%, which could increase as its earnings recover. The stock is trading at a forward price-to-earnings ratio of 23.6, which is below its five-year average of 28.4.
2. Wynn Resorts (NASDAQ: WYNN)
Wynn Resorts is another leading casino operator with a focus on the premium segment of the market. The company operates luxury resorts in Las Vegas, Macau, and Boston, and is developing a new resort in Japan. Wynn Resorts has a loyal customer base, a strong brand reputation, and a high-quality service offering. The stock is trading at a forward price-to-earnings ratio of 26.9, which is below its five-year average of 32.8.
3. MGM Resorts (NYSE: MGM)
MGM Resorts is one of the largest casino operators in the U.S., with properties in Las Vegas, Atlantic City, Detroit, and other markets. The company also has a stake in BetMGM, one of the fastest-growing online sports betting and gaming platforms in the country. MGM Resorts has been investing in digital transformation, cost-cutting initiatives, and asset-light strategies to improve its profitability and growth prospects. The stock is trading at a forward price-to-earnings ratio of 21.4, which is below its five-year average of 25.7.
4. Caesars Entertainment (NASDAQ: CZR)
Caesars Entertainment is the largest casino operator in the U.S. by number of properties, with over 50 casinos across 16 states. The company also owns William Hill, one of the largest online sports betting and gaming companies in the world. Caesars Entertainment has been benefiting from the legalization of sports betting in various states, as well as from its merger with Eldorado Resorts in 2020. The stock is trading at a forward price-to-earnings ratio of 18.7, which is below its five-year average of 22.9.
5. Penn National Gaming (NASDAQ: PENN)
Penn National Gaming is a regional casino operator with 41 properties across 19 states. The company also owns a 36% stake in Barstool Sports, one of the most popular online sports media and betting platforms in the U.S. Penn National Gaming has been leveraging its partnership with Barstool Sports to attract younger and more engaged customers to its online and offline offerings. The stock is trading at a forward price-to-earnings ratio of 29.8, which is below its five-year average of 34.6.
Disclaimer: This article is for informational purposes only and does not constitute financial advice or endorsement of any stocks mentioned.