Gambling

Traders Expect Two Defeated Gambling Stocks to Rebound Amid Positive Outlook

The previous week has worked wonders for gambling stocks, indicating a positive outlook for the short future. Wynn, Penn National Gaming, Las Vegas Sands, MGM Resorts, and Caesars have gained substantial growth in recent days. The boost came after Macao relieved its visitors’ restrictions from China.

The region has witnessed immense volatility for the past 18 months. The situation worsened after closures, travel disruptions, and uneven user traffic during the pandemic. But with the regions easing restrictions, the tide might carry casino stocks to the shore.

Quint Tatro, Joule Financial’s president, agrees with the sentiment, at least for one stock. According to Joule, Las Vegas Sands is the best bet for traders under the current scenario. The company faced an abrupt shift in March 2021 and sold all of its Las Vegas venues to focus on the Asian region. The move raised numerous questions regarding the management of the casino.

However, the move makes utmost sense now as the focus shifts to the eastern region. With Macao’s rebound and China’s reopening, the casino is expected to experience optimal exposure. In addition, Las Vegas Sands announced the sale of its Las Vegas properties in 2021 Q1. After including the Venetian Resort, the trade amounted to 6.25 billion dollars.

It does not negate the fact that its balance sheet is complicated with several question marks. However, the venture possesses over 2 billion dollars in unrestricted cash, which they will use wherever they see fit. Las Vegas Sands will hog all the glory if the rebound is genuine and the market witnesses a resurgence. The casino is trading 28% low for the year, so now seems to be the time to invest in it.

On the other hand, JC O’Hara, MKM Partners’ Chief Market technician, has concerns about the exposure of casinos in China. So instead, JC trusts DraftKings, a casino stock that has regained stability after the pullback. 

The stock is gaining stability in an uptrend, breaking through the 150-day average. If the market sees where the positive price action is, DraftKings shine the brightest. With the market showing a positive outlook, the stocks might offer unprecedented numbers in the short run.

David Bright

David Bright joined Times of Casino as a news writer focused on the casino industry. He holds a bachelor degree in Economics and Accounting and currently contributing in-depth news articles. David writes on the casinos, gambling legislation, poker, and much more.

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