Top 5 Gambling Stocks to Consider In 2019
Over the years, people have become more familiar with gambling, thanks to mobile games and appealing online slots. In fact, gambling has become part of people’s lives. Since betting has become legalized in the United States, the gambling sector is going to explode.
Smart and experienced investors also know that this the best time to enter the industry and make tons of money. If you want to develop your portfolio tapping into this industry, make sure you check out the right stocks. Given below is a description of the top 5 gambling stock you may want to try out.
Caesars Entertainment Corporation (CZR)
According to the latest quarterly reports released by CZR, the company has lost $0.09 per share. This is an increase from $0.03 per share
This year, the company has reported a rise of 82.3% in its shares. During the third quarter, it reported a figure of $2.24b. In fact, it has done much better than the estimates made for 4 straight quarters.
Without any doubt, Caesars is leading the gambling industry. So, you may want to bet on it.
MGM Resorts International (MGM)
If you are not a risk-taker, MGM is your best bet. Apart from the US, MGM is quite popular in China as well. During the third quarter of 2019, MGM reported $0.31 per share, which is an increase of 34.8% from the previous year. The total revenue was $3,314.4 million.
Scientific Games (SGMS)
Scientific Games is your best bet if you are in search of a stock that has a solid competitive strategy. The company is a creator of products, services, and content for digital lottery and gaming industries. So, it will have a significant share of the betting market as well.
Since the company will offer infrastructure for the industry, chances are that it will experience significant growth. According to most estimates, the revenue growth rate in this quarter is 114.3%.
The third-quarter progress of the company is also impressive. By the end of September, the company revenue hit $855 million, which was $821 million in the third quarter of 2018. In 2018, the company invested more than $300 million for restructuring.
International Game Technology (IGT)
IGT believes in innovation and focuses on digital and social gaming. According to the reports released by Zacks, the company may report the earnings of 35 cents in Q3 in addition to $1.17 billion in revenue.
IGT also implemented the Dynasty Electronic Table Game, which is a live streaming system. The terminals offer baccarat and blackjack games.
The Stars Group (TSG)
In Q3, TSG reported quarterly earnings of $0.50 per share, which were higher than the Zacks Consensus Estimate of $0.42. This is an incredible improvement since the third quarter of 2018. Besides, TSG also reported a surprise earning of 19.05%. With $622.48 million of revenue, the company beat the Zacks estimates by 3.78%.
After the Q3 of this year, the stock price of the company increased by 44.5%, which is a clear indication of investor confidence. For the most part, this positive change is due to the acquisition announcement of the company by Flutter Entertainment.
Flutter is an Ireland-based company that owns big players in the gambling industry such as ICE 36, Casumo Canada, and Slotty Vegas. Overall, the company will be part of a giant that may improve its share further.
Things to keep in mind when buying gambling stocks
It’s all right to invest in gambling stocks. Last year, PASPA was struck down by the Supreme Court. Therefore, we can see the gambling industry doing much better. Both inside and offshore companies are showing their interest in the United States market.
It’s important to note that a patchwork of regulations govern the gambling industry. Although states can have their own betting laws, the regulations vary greatly. As a result, it adds to the headaches, paperwork, and burdens for gambling companies.
If you are going to put money in a gambling stock, make sure you choose a company that has a considerable interest in the sports betting market. Since this field is new, these companies will have a better time than the ones that are limited to casinos only. Besides, you should find out if the company offers mobile/digital offerings.
In fact, the two sub-sectors play a great role in industry growth. Lastly, you should focus on reputed brands and companies since the industry has a fickle nature.
The writer of this article has no position in the above-mentioned stocks. The writer is not a certified financial advisor either. Therefore, this article shouldn’t be taken as investment advice.
It’s important to keep in mind that dealing with securities may also result in monetary losses. Therefore, as an investor, you may want to be careful and consult your adviser prior to making an investment decision.