{"id":215466,"date":"2022-05-31T07:52:16","date_gmt":"2022-05-31T14:52:16","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=215466"},"modified":"2022-05-31T11:08:10","modified_gmt":"2022-05-31T18:08:10","slug":"casino-stocks-are-supported-by-rising-ggr-low-valuations","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/casino-stocks-are-supported-by-rising-ggr-low-valuations\/","title":{"rendered":"Casino Stocks Inexpensive as Gaming Revenue Shows Resiliency, Says Analyst"},"content":{"rendered":"<p>Casino stocks are trading at heavily discounted valuations, and gross gaming revenue (GGR) is proving surprisingly sturdy against a challenging macroeconomic backdrop.<\/p>\n<figure id=\"attachment_215471\" aria-describedby=\"caption-attachment-215471\" data-style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-215471\" src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/regional-1-142x80.jpg\" alt=\"casino stocks\" width=\"1200\" height=\"675\" \/><figcaption  id=\"caption-attachment-215471\"class=\"text-description\">Slots players at Tropicana Las Vegas. An analyst says casino stocks are cheap and GGR is strong. (Image: Ethan Miller\/Getty Images)<\/figcaption><\/figure>\n<p>That\u2019s the sentiment of Roth Capital analyst Edward Engel, who in a note to clients today points out that while investors are looking for signs of sluggish GGR due to weakness in other parts of the consumer discretionary space, April GGR paints a different picture.<\/p>\n<blockquote class=\"main-blockquote\"><p><strong>Yet April GGR showed continued strength with regional GGR growing 2.8% year-over-year against more difficult comps. While we expect May\/June to decline year-over-year against comps that benefited from stimulus and pent-up demand (May\/June &#8217;21 grew +11% vs 2019), 2Q22 can still come within 5% of 2Q21 as long as May\/June &#8217;22 decline less than 9% year-over-year,\u201d<\/strong> said the analyst.<\/p><\/blockquote>\n<p>Given the tough comparisons the industry is facing in the second half of 2022, any GGR growth could spark confidence among investors that casino stocks are, in fact, proving sturdier than other consumer cyclical fare. Gaming equities are entering <a href=\"https:\/\/www.casino.org\/news\/gaming-stocks-have-penchant-for-sagging-in-june\/\">a historically weak period.<\/a> But if May GGR figures surprise to the upside, typically ominous June performances could be avoided.<\/p>\n<h2>Regional Resiliency<\/h2>\n<p>Data indicates that while revenue declined in Southeastern markets, the overall April GGR picture for regional casino operators was strong.<\/p>\n<p>\u201cRegional casino GGR was +3% YoY, with the month benefiting from one more weekend day than last year. GGR grew in 17 of 27 markets, where declines were concentrated in southeastern states (FL, LA, MS) that eased restrictions early last year. Looking into May\/June, we believe avg. daily revs can reach Jan\/Feb&#8217;s avg. rate, implying May\/June GGR -7% YoY and 2Q22 -3.5%,\u201d adds Engel.<\/p>\n<div class=\"callout\">\n<p>April strength is a positive sign, because <a href=\"https:\/\/www.casino.org\/news\/inflation-could-take-toll-on-casinos-says-hard-rock-ceo-allen\/\">some industry executives say<\/a> it could be just a matter of time before high gas prices &#8212; a scenario showing no signs of abating over the near-term &#8212; crimp regional operators. That thesis is rooted in the notion that the bread-and-butter clientele for those venues are folks making daytrips to the properties via car.<\/p>\n<\/div>\n<p><strong>Data also confirms that spend per visitor increased in April across a variety of regional casino markets, including Iowa, Laughlin, Nevada, Louisiana, and Missouri.<\/strong><\/p>\n<h2>Buyback Binge, Casino Stocks Are Cheap<\/h2>\n<p>Casino stocks could find some support from operators that are eagerly <a href=\"https:\/\/www.casino.org\/news\/casino-stock-buybacks-soaring-mgm-ballys-penn-leading\/\">repurchasing their own shares<\/a> \u2013&#8211;something that\u2019s occurring as many of these names are well off prior highs.<\/p>\n<p>\u201cIn the past nine months, gaming companies have authorized ~$6bn in buy-backs, with remaining authorizations at ~10% of market caps,\u201d notes Engel. \u201cWhile we acknowledge concerns towards demand in a recessionary environment, insider buying and spend\/trip trends give us more confidence in sticky demand.\u201d<\/p>\n<p><strong>That could be a sign executives see value in their companies\u2019 stocks. Speaking of value, some casino stocks are offering that.<\/strong><\/p>\n<p>\u201cLand-based Gaming valuations are trading at trough valuations despite record earnings,\u201d concludes Engel. \u201cEV\/EBITDA multiples have returned to 2H18\/1H19 levels, but underlying valuations are actually cheaper alongside higher FCF conversion rates.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Casino stocks are trading at heavily discounted valuations, and gross gaming revenue (GGR) is proving surprisingly sturdy against a challenging macroeconomic backdrop. That\u2019s the sentiment of Roth Capital analyst Edward Engel, who in a note to clients today points out that while investors are looking for signs of sluggish GGR due to weakness in other [&hellip;]<\/p>\n","protected":false},"author":46,"featured_media":215467,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Casino Stocks Are Supported By Rising GGR, Low Valuations<\/title>\n<meta name=\"description\" content=\"Casino stocks could get a lift from surprisingly strong gross gaming revenue, says an analyst.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Casino Stocks Are Supported By Rising GGR, Low Valuations\" \/>\n<meta property=\"og:description\" content=\"Casino stocks could get a lift from surprisingly strong gross gaming revenue, says an analyst.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/casino-stocks-are-supported-by-rising-ggr-low-valuations\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2022-05-31T14:52:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-05-31T18:08:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/regional.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/casino-stocks-are-supported-by-rising-ggr-low-valuations\/\",\"url\":\"https:\/\/www.casino.org\/news\/casino-stocks-are-supported-by-rising-ggr-low-valuations\/\",\"name\":\"Casino Stocks Are Supported By Rising GGR, Low Valuations\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/casino-stocks-are-supported-by-rising-ggr-low-valuations\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/casino-stocks-are-supported-by-rising-ggr-low-valuations\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/regional.jpg\",\"datePublished\":\"2022-05-31T14:52:16+00:00\",\"dateModified\":\"2022-05-31T18:08:10+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Casino stocks could get a lift from surprisingly strong gross gaming revenue, says an analyst.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/casino-stocks-are-supported-by-rising-ggr-low-valuations\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/casino-stocks-are-supported-by-rising-ggr-low-valuations\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/casino-stocks-are-supported-by-rising-ggr-low-valuations\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/regional.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/regional.jpg\",\"width\":1280,\"height\":720,\"caption\":\"Slots players at Tropicana Las Vegas. An analyst says GGR is growing casino stocks are inexpensive. (Image: Ethan Miller\/Getty Images)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/casino-stocks-are-supported-by-rising-ggr-low-valuations\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Casino Stocks Inexpensive as Gaming Revenue Shows Resiliency, Says Analyst\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Casino Stocks Are Supported By Rising GGR, Low Valuations","description":"Casino stocks could get a lift from surprisingly strong gross gaming revenue, says an analyst.","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"Casino Stocks Are Supported By Rising GGR, Low Valuations","og_description":"Casino stocks could get a lift from surprisingly strong gross gaming revenue, says an analyst.","og_url":"https:\/\/www.casino.org\/news\/casino-stocks-are-supported-by-rising-ggr-low-valuations\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2022-05-31T14:52:16+00:00","article_modified_time":"2022-05-31T18:08:10+00:00","og_image":[{"width":1280,"height":720,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/regional.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/casino-stocks-are-supported-by-rising-ggr-low-valuations\/","url":"https:\/\/www.casino.org\/news\/casino-stocks-are-supported-by-rising-ggr-low-valuations\/","name":"Casino Stocks Are Supported By Rising GGR, Low Valuations","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/casino-stocks-are-supported-by-rising-ggr-low-valuations\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/casino-stocks-are-supported-by-rising-ggr-low-valuations\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/regional.jpg","datePublished":"2022-05-31T14:52:16+00:00","dateModified":"2022-05-31T18:08:10+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Casino stocks could get a lift from surprisingly strong gross gaming revenue, says an analyst.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/casino-stocks-are-supported-by-rising-ggr-low-valuations\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/casino-stocks-are-supported-by-rising-ggr-low-valuations\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/casino-stocks-are-supported-by-rising-ggr-low-valuations\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/regional.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/05\/regional.jpg","width":1280,"height":720,"caption":"Slots players at Tropicana Las Vegas. An analyst says GGR is growing casino stocks are inexpensive. 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Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. 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