Investors are rolling the dice on beaten down casino stocks.
Over the last few weeks:
- MGM Resorts (MGM) found support around $38 and is pivoting higher
- Penn National (PENN) is starting to bounce after finding support at $50.28
- Las Vegas Sands (LVS) is bouncing from double bottom support
- Wynn Resorts (WYNN) is bouncing from double bottom support around $86.50
- Caesars Entertainment (CZR) is also pushing higher from double bottom support
All as investors look beyond the omicron threat, and push into “reopening” trades.
Even better, according to the American Gaming Association, commercial gaming revenue just hit a new quarterly high of $13.89 billion in the third quarter.
In fact, “With $38.67 billion in revenue through the first nine months of the year, the industry has already passed revenue generated for the full year 2020 and is on pace to smash its annual record of $43.65 billion, set in 2019,” according to the AGA.
“Two straight quarters of record gaming revenue is an incredible accomplishment in any context, let alone after the most challenging year in industry history,” added AGA President and CEO Bill Miller. “Our recovery is not a flash in the pan, but rather a sustained result of our leadership in responsible reopening, world-class entertainment offerings and widespread favorability.”
Even more impressive, nearly half of U.S. states with commercial casinos hit new quarterly records. In Las Vegas, for example, gaming revenue was up to $2.06 billion for Q3 2021 thanks to a big boost in visitors to the Strip this year.
With many casino stocks bottoming out, there’s a good deal of opportunity to be found.
