Tuesday, September 28, 2010
Are Casino Stocks Worth a Bet?
Maryland now has its first casino, developed by Penn National Gaming Inc. (PENN). Pinnacle Entertainment Inc. (PNK) is opening a new casino in Baton Rouge, Louisiana. Genting New York is developing a casino at Aqueduct. Thunder Valley Casino Resort in California is offering the first casino helicopter service in the state. The recent opening of SugarHouse Casino makes Philadelphia the largest U.S. city with casino gambling.
The gaming industry is hot, and it doesn't seem to matter whether the casino companies are making money or losing money. There are actually a couple ways to play this game: the gaming machine providers and the casinos themselves. WallStreetNewsNetwork.com has turned up over 20 of these casino stocks.
WMS Industries Inc. (WMS) is a way to play the supplier industry. It develops, makes, and markets gaming machines and video lottery terminals, including slot machines and video poker gaming machines. The stock sports a forward price to earnings ratio of 14.8, and carries a very favorable price earnings growth ratio of 0.60. Jefferies just initiated coverage with a Buy rating. The debt free company has $166 million in cash. Earnings for the latest quarter were up 18% and the next earnings announcement is scheduled for October 25.
Wynn Resorts Ltd. (WYNN) is one of the major casino operators, with two casinos in Las Vegas and one in Macau. The stock carries a forward PE ratio of 39 and a PEG ratio of 1.91. It even pays a yield of 1.1%. Earnings for the latest quarter were up over 105%. The next upcoming earnings announcement is October 27.
For a free list of casino and casino related stocks that can be downloaded and sorted, go to WallStreetNewsNetwork.com.
Author does not own any of the above.