regional casino stocks<\/a> are two points: geographic diversification and historical precedent. Even if a recession arrives and morphs into an economic collapse comparable to the global financial crisis — an unlikely proposition — regional operators could prove steady relative to the broader consumer discretionary sector.<\/p>\n<\/div>\n\u201cAs evidenced during the global financial crisis, when Regional Gaming revenues fell mid-single digits compared to other discretionary sectors down closer to 20%, Regional Gaming has remained resilient during the last few years. As it relates to \u201923 guidance, a different task for any company in \u201923, we expect companies to issue ~flat revenue guidance (confirmed by PENN), particularly if weakness isn\u2019t seen in January,\u201d added Beynon.<\/p>\n
Others on Wall Street believe that regional casinos could be durable in the early stages of a recession and may not be vulnerable until a material increase in unemployment data arrives. However, the January jobs report delivered Friday was better than expected, and the unemployment rate is at a multidecade low.<\/p>\n
Forecasting Regional Casino Earnings Surprises<\/h2>\n Beynon forecasts the biggest earning beats among regional casino operators will arrive courtesy of Bally\u2019s (NYSE: BALY), MGM Resorts International (NYSE: MGM), and Monarch Casino & Resort (NASDAQ: MCRI).<\/p>\n
Although MGM is the largest operator on the Las Vegas Strip, it also boasts an extensive regional portfolio, particularly in the Mid-Atlantic and Northeast regions.<\/strong><\/p>\nAs for regional casino companies that could be in line with or slightly miss earnings estimates, Beynon forecasts that group could include Caesars Entertainment (NASDAQ: CZR), \u00a0Century Casinos<\/a> (NASDAQ: CNTY), Full House Resorts (NASDAQ: FLL), Wynn Resorts\u2019 (NASDAQ: WYNN) Encore Boston Harbor.<\/p>\n","protected":false},"excerpt":{"rendered":"Gaming equities of all stripes are performing well to start 2023. But regional casino stocks could be among the sturdier names as this year unfolds. As 2022 drew to a close, the investment community expressed fears that regional casinos would be pinched by the toxic combination of high inflation, rising interest rates, and consumers dialing […]<\/p>\n","protected":false},"author":46,"featured_media":257750,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[81897,81903],"acf":[],"yoast_head":"\n
Regional Casino Stocks Have Potential To Be Resilient<\/title>\n \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