{"id":275388,"date":"2023-05-30T19:08:25","date_gmt":"2023-05-31T00:08:25","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=275388"},"modified":"2023-06-01T14:37:18","modified_gmt":"2023-06-01T19:37:18","slug":"casino-stocks-can-contribute-to-cyclical-sector-rebound","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/casino-stocks-can-contribute-to-cyclical-sector-rebound\/","title":{"rendered":"Casino Stocks Could Participate in Cyclical Rebound"},"content":{"rendered":"

Amid financial market fervor for artificial intelligence (AI), sleepier cyclical stocks — including select shares of casino operators — are languishing.<\/p>\n

\"casino
The Las Vegas Strip. Analysts believe cyclical stocks, including casino names, are inexpensive and can rebound. (Image: CNN<\/em>)<\/figcaption><\/figure>\n

Casino stocks have been punished in recent weeks, and the damage is widespread. Over the past month, the average loss incurred by MGM Resorts International<\/a> (NYSE: MGM) and Caesars Entertainment (NASDAQ: CZR), the two largest operators on the Las Vegas Strip, is nearly 10.5%.<\/p>\n

Macau-centric names haven\u2019t fared any better over that span, as shares of Las Vegas Sands (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN) are lower by 13.81% and 12.92%, respectively. Performances such as those imply that investors treat gaming equities like a recession is afoot. But activity on the Strip<\/a> and the Macau rebound suggest otherwise. Some analysts believe there’s a silver lining to the recent lethargy in gaming equities.<\/p>\n

The more investor sentiment is prepared for recession risk, the less of a shock effect [that] recession reality is likely to have,\u201d<\/strong> wrote Citi equity strategist Scott Chronert in a recent report.<\/p><\/blockquote>\n

He\u2019s among the market observers who believe cyclical stocks have rebound potential. Casino equities could be part of that resurgence if it comes to pass.<\/p>\n

Important Details Regarding Casino Stocks<\/h2>\n

Casino stocks such as Caesars, MGM, Sands, and Wynn reside in the consumer discretionary sector<\/a>. That group is dominated by just two names, Amazon (NASDAQ: AMZN) and Tesla (NASDAQ: TSLA). That pair combined for 41.4% of the S&P 500 Consumer Discretionary Index.<\/p>\n

\n

As such, that duo often drives the sector\u2019s performance. But gaming equities are beholden to different dynamics. For example, a consumer could resist a high-priced Tesla or dial back impulse buys on Amazon while redirecting those funds to gaming-related indulgences. Data suggest leisure travelers remain fond of the Las Vegas Strip, while the Macau rebound is outpacing even the most bullish expectations.<\/p>\n<\/div>\n

\u201cMacau\u2019s ramp to full EBITDA (earnings before interest, taxes, depreciation, and amortization) recovery continues to pull forward, which could come as early as the second half of 2023, indicating plenty of potential upside to consensus in the coming quarters, while shares have mostly traded sideways for the last three months,\u201d wrote Barclays analyst Brandt Montour earlier this month in a report on Wynn<\/a>.<\/p>\n

The earnings recovery in the special administrative region (SAR) is supportive of Sands, Wynn, and MGM, which run a combined nine integrated resorts there.<\/p>\n

Cyclical Stocks Cheap, Debt Declining<\/h2>\n

There are at least two sources of allure with cyclical stocks, which also pertain to casino equities. First, the group is inexpensive. Second, cyclical companies are reducing debt, a theme evident<\/a> in the gaming space.<\/p>\n

The cyclicals group\u2019s aggregate long-term debt as a percentage of their market values is about 70%, down from around 90% around the end of 2020,\u201d<\/strong> reports Barron\u2019s.<\/em><\/p><\/blockquote>\n

Gaming companies\u2019 debt reduction efforts are generally met with applause in the investment community, and the moves are seen as priorities following significant capital raises deployed during the early stages of the coronavirus pandemic.<\/p>\n","protected":false},"excerpt":{"rendered":"

Amid financial market fervor for artificial intelligence (AI), sleepier cyclical stocks — including select shares of casino operators — are languishing. Casino stocks have been punished in recent weeks, and the damage is widespread. Over the past month, the average loss incurred by MGM Resorts International (NYSE: MGM) and Caesars Entertainment (NASDAQ: CZR), the two […]<\/p>\n","protected":false},"author":46,"featured_media":261054,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,33810,81886],"tags":[81903,81898,23],"acf":[],"yoast_head":"\nCasino Stocks Can Contribute To Cyclical Sector Rebound<\/title>\n<meta name=\"description\" content=\"Casino stocks are inexpensive and can lead cyclical sectors bounce back.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/casino-stocks-can-contribute-to-cyclical-sector-rebound\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Casino Stocks Can Contribute To Cyclical Sector Rebound\" \/>\n<meta property=\"og:description\" content=\"Casino stocks are inexpensive and can lead cyclical sectors bounce back.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/casino-stocks-can-contribute-to-cyclical-sector-rebound\/\" \/>\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=\"2023-05-31T00:08:25+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-06-01T19:37:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/strip3.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\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-can-contribute-to-cyclical-sector-rebound\/\",\"url\":\"https:\/\/www.casino.org\/news\/casino-stocks-can-contribute-to-cyclical-sector-rebound\/\",\"name\":\"Casino Stocks Can Contribute To Cyclical Sector Rebound\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/casino-stocks-can-contribute-to-cyclical-sector-rebound\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/casino-stocks-can-contribute-to-cyclical-sector-rebound\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/strip3.jpeg\",\"datePublished\":\"2023-05-31T00:08:25+00:00\",\"dateModified\":\"2023-06-01T19:37:18+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Casino stocks are inexpensive and can lead cyclical sectors bounce back.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/casino-stocks-can-contribute-to-cyclical-sector-rebound\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/casino-stocks-can-contribute-to-cyclical-sector-rebound\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/casino-stocks-can-contribute-to-cyclical-sector-rebound\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/strip3.jpeg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/strip3.jpeg\",\"width\":1200,\"height\":675,\"caption\":\"The Las Vegas Strip. The city ranked as the 65th-best run in a new WalletHub study. (Image: CNN)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/casino-stocks-can-contribute-to-cyclical-sector-rebound\/#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 Could Participate in Cyclical Rebound\"}]},{\"@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 Can Contribute To Cyclical Sector Rebound","description":"Casino stocks are inexpensive and can lead cyclical sectors bounce back.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/casino-stocks-can-contribute-to-cyclical-sector-rebound\/","og_locale":"en_US","og_type":"article","og_title":"Casino Stocks Can Contribute To Cyclical Sector Rebound","og_description":"Casino stocks are inexpensive and can lead cyclical sectors bounce back.","og_url":"https:\/\/www.casino.org\/news\/casino-stocks-can-contribute-to-cyclical-sector-rebound\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2023-05-31T00:08:25+00:00","article_modified_time":"2023-06-01T19:37:18+00:00","og_image":[{"width":1200,"height":675,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/strip3.jpeg","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-can-contribute-to-cyclical-sector-rebound\/","url":"https:\/\/www.casino.org\/news\/casino-stocks-can-contribute-to-cyclical-sector-rebound\/","name":"Casino Stocks Can Contribute To Cyclical Sector Rebound","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/casino-stocks-can-contribute-to-cyclical-sector-rebound\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/casino-stocks-can-contribute-to-cyclical-sector-rebound\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/strip3.jpeg","datePublished":"2023-05-31T00:08:25+00:00","dateModified":"2023-06-01T19:37:18+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"Casino stocks are inexpensive and can lead cyclical sectors bounce back.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/casino-stocks-can-contribute-to-cyclical-sector-rebound\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/casino-stocks-can-contribute-to-cyclical-sector-rebound\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/casino-stocks-can-contribute-to-cyclical-sector-rebound\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/strip3.jpeg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/strip3.jpeg","width":1200,"height":675,"caption":"The Las Vegas Strip. The city ranked as the 65th-best run in a new WalletHub study. (Image: CNN)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/casino-stocks-can-contribute-to-cyclical-sector-rebound\/#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 Could Participate in Cyclical Rebound"}]},{"@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\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/275388"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=275388"}],"version-history":[{"count":3,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/275388\/revisions"}],"predecessor-version":[{"id":275743,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/275388\/revisions\/275743"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/261054"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=275388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=275388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=275388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}