The gaming and casino industry took some hits during the last quarter of 2021 in the stock market. Most of this was attributed to the spread of the Omicron strain of Covid. The anticpation that we will go back to a period of less social engagement has made some investors leary of the hospitality industry. Keep in mind that the level of gaming online has never been higher. So while the 1st quarter of 2022 will require management adjustments based on restrictions and staffing, the top teams will still retain market share. You can find value by investing in companies that are historically resilient.
Rush Street Interactive: Current price is $16.78. The 52 week high is $26.55 while the low is $9.47. The recent ground breaking of a new property in Portsmouth Virginia and the prospect of expanding into Chicago Illinois are reasons for optimism. RSI has an outstanding reputation and a proven track record with sportsbooks and gaming in several jurisdictions. RSI is the retail market leader in the three most populous states that have legalized retail sports betting – Pennsylvania, Illinois and New York.
Penn National Gaming: Current price is $51.30. The 52 week high is $142.00 while the low is $43.36. Penn just opened a new casino in Morgantown,Virginia.Penn has been working with Barstool Sports on opening sports bars in Philadelphia and Chicago as they promote the sports betting app.Louisiana is expected to offer additional sports betting licenses in January and Penn is in consideration.
Boyd Gaming Corporation: Current price is $65.39. The 52 week high is $71.00 while the low is $41.12. Boyd recieved 6 Buy reccomendations from a group of respected stock analysts. They project Boyd as having a high range of $88.00 over the next 6 months.
DraftKings:Current Price is $28.46. The 52 week high is $74.38 and the low is $25.80. DraftKings recieved an overwheming consensus to buy from 32 stock analyst. Name recognition has this as a brand that people are familar with when there is a conversation about sports betting. If the stock price goes up by 20% in 2022, you are looking at a price $34.15. If you purchase 100 shares today,your investment would increase in value by $569.00 in 2022.
I look at gaming stock as opportunities to invest in companies that have a presence in major markets that cater to tourism and city that have large populations.As more states add sports betting to their gaming offerings,the price and revenue of casino related stocks that have a strong online presence will go up. Do some research and find the stock and company that is right for you. Keep in mind that buying stock is an investment and should be viewed as long term speculation. Have a number in mind to sell any stock that is descending in price and value.
If you are on LinkedIn, we can have a professional exchange there. If you chat on Twitter you can follow me for NFL & NBA.
