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What Analysts Are Recommending for Major Casinos

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Analyst recommendations

Analysts seem to be favoring MGM Resorts (MGM) stock over the other major casinos. Of the 17 analysts tracking MGM stock, 16 of them (or 94.0%) recommend a “buy.” About 27.8% (or five analysts) have a “strong buy” recommendation, while the remaining 72.2% have a “buy” recommendation.

For Melco Crown Entertainment (MPEL), 14 of the 19 analysts tracking the stock (or 74.0%) recommend a “buy,” and 26.0% recommend a “hold.” None of the analysts recommend a “sell.” Ten of the 17 analysts (or 59.0%) tracking Las Vegas Sands (LVS) recommend a “buy” for the stock, and 41.0% recommend a “hold.” None of the analysts recommend a “sell.” Seven of the 17 analysts (or 41.0%) tracking Wynn Resorts (WYNN) recommend a “buy” for the stock, and the remaining 59.0% recommend a “hold.” Again, none of the analysts recommend a “sell.”

Return potential

As of August 29, 2017, with a closing price of $20.97, Melco Crown Entertainment has the highest return potential of 23.0% at the current 12-month consensus target price of $25.80. MGM Resorts has a return potential of 17.1% at the current 12-month consensus target price of $37.50, and a current market price of $32. Las Vegas Sands has a return potential of 8.1% at the current 12-month consensus target price of $65.60 at the current market price of $60.70. Wynn Resorts has a return potential of 5.2% at the current 12-month consensus target price of $142.30 at the current market price of $135.30.

Investors can gain exposure to casino stocks by investing in the PowerShares Dynamic Leisure & Entertainment ETF (PEJ), which invests 14.7% of its portfolio in casinos.

Be sure to visit Market Realist’s Casinos and Gaming page to learn more about the industry, its indicators, and current trends.

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