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The Harrah’s and Ameristar operators are two of the top five names on Goldman’s list of biggest one-year capital gains and are the only gaming equities in the group. The other three are apparel retailers Gap and L Brands, and electric vehicle giant Tesla.<\/p>\n<\/div>\n
Neither Caesars nor Penn appears in the groupings for the largest three- and five-year capital gains. But the Flamingo operator is in the top five for most substantial 10-year capital gains, according to Goldman Sachs.<\/p>\n
\u201cTech and Consumer Discretionary sectors have been the largest sources of capital gains within the US equity market during the last 3, 5, and 10 years,\u201d<\/strong> says the bank.<\/p>\nGaming equities, including Caesars and Penn, reside in the consumer cyclical sector.<\/p>\n
Good News, Maybe Some Bad, Too<\/h2>\n
For investors currently holding either Caesars or Penn, the good news is that the Biden capital gains tax plan pertains to a scant percentage of investors and US households. Roughly three-quarters of US investors that own equities do so through retirement plans, such as 401(k)’s and individual retirement accounts (IRAs). Those vehicles are exempt from the White House’s tax hike plan.<\/p>\n
However, the two gaming names aren’t entirely out of the woods. In particular, Penn is recently struggling, residing 34.64 percent below its 52-week high.<\/strong><\/p>\nAdditionally, the combination of big 12-month gains that could compel investors to make profits regardless of tax policy, and fierce competition<\/a> in the iGaming and online sports betting segments, could prompt some market participants to reduce exposure to Caesars and\/or Penn.<\/p>\n","protected":false},"excerpt":{"rendered":"President Biden recently proposed the largest US tax increase in three decades. If that plan becomes law, it could affect an array of stocks, including Caesars Entertainment (NASDAQ:CZR) and Penn National Gaming (NASDAQ:PENN). The Made in America Tax Plan includes a near doubling of the current capital gains rate for the wealthiest Americans. The White […]<\/p>\n","protected":false},"author":46,"featured_media":171986,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,13],"tags":[],"acf":[],"yoast_head":"\n
Biden Cap Gains Tax Plan Could Punish Caesars, Penn Stocks<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n