Overall, the gaming industry's stock prices haven't been very good this year.
This is due to macroeconomic headwinds such as persistent inflation and rising interest rates, as well as continued concerns about when sportsbook operators will eventually become profitable.However, gross gaming revenue (GGR) and visitor numbers, including Las Vegas and regional markets, confirm the stock market downturn and the aforementioned economic problems.
Macquarie analyst Chad Beynon said in a recent note to clients that various gaming industry data points to strong fourth-quarter earnings.In addition, it is likely to remain strong until the first half of 4.
G2E（22年10月）および第3四半期決算（22年10-11月）以降、我々はいくつかの業界およびマクロデータを消化し、また経営陣のコメントも更新してきた。現時点では、消費者の回復力、低失業率、公表されたデータを考慮し、22年第4四半期および23年上半期の予測にやや安心感がある」とベイノンは書いている。At Macquarie, Caesars Entertainment (NASDAQ:CZR), DraftKings (NASDAQ:DKNG), Every (NYSE:EVR), International Game Technology (NYSE:IGT), MGM Resorts International (NYSE:MGM) and Penn & Co. We recommend gaming industry stock proposals for Entertainment (NASDAQ:PENN) in alphabetical order.
Strong Q4 cues from the gaming industry
October was the 10th month in a row that Nevada casinos posted over $20 billion in GGR. As Beynon points out, there are signs that Las Vegas and regional operators can finish 10 on a high note.
“Q4 saw regional GGR of $1 billion in October (+10% YoY, +34% YoY) and Vegas (+2% YoY, +19% YoY) in October, despite one less weekend (+14% YoY) and online in the US (+1% YoY) are off to a good start," the analyst added. ``Slot revenue could be expected to be slightly below table revenue given the strength from last year's performance. That said, it's encouraging to see NV slot revenue hit an all-time high.''
Outside the US, there are finally signs of life among Macau stocks, despite China's zero COVID policy and associated travel restrictions still rolling out.In fact, Las Vegas Sands (NYSE:LVS) and Wynn Resorts (NASDAQ:WYNN), which control a total of seven Macau integrated resorts, are among the best performing gaming stocks this year.
“For Macau, demand is expected to improve significantly ahead of the Chinese Lantern Festival (January 1nd), which could serve as a catalyst for the Macau forecast,” Beynon said.
Game Industry Small Cap Ideas
With the exception of Every, Macquarie's selection of stocks in the gaming industry is mid- and large-cap.But the research firm has some ideas for small-caps, the segment of market capitalization that has outperformed its larger rivals this year.
In addition to Every, Macquarie has positive views on internet lottery provider NeoGames (NASDAQ:NGMS) and sportsbook operator Rush Street Interactive (NYSE:RSI), among other small-cap gaming stocks.
The near-profitable RSI operates under the BetRivers and PlaySugarHouse brands and is currently available for mobile or retail businesses in Colorado, Illinois, Indiana, Iowa, Michigan, New Jersey, New York, Pennsylvania, Virginia and West Virginia. increase.
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