Take a Gamble: This Year's Top Performing List of Casino Stocks
(List compiled by Andrew Dominguez. Data sourced from Finviz.)
If there were one phrase that could encapsulate the entirety of gambling, it might be: "the house always wins." Well, it seems that Wynn has won this one.
Wynn Resorts, the casino giant, reported net revenues of $1.367B for the 2nd quarter of 2011, which is 32.4% or over $300M more than net revenues in the 2nd quarter of 2010.
The gains came from a 36.7% revenue increase in Wynn Macau and a 22.8% revenue increase in Las Vegas, according to Beacon Equity Research.
EBITDA (earnings before interest, taxes, depreciation, and amortization) increased 58.9% in the quarter compared to the same quarter a year earlier.
And adjusted earnings per share nearly tripled from $0.52 last year to $1.60 in the 2nd quarter of this year, reports Travis Hoium on Motley Fool.
One of the reasons Wynn has performed so well: win percentages at tables. According to Hoium, Wynn expect to win 26-28% of its table games in Macau compared to 21-24% forecasts for its Las Vegas tables.
Wynn reported earnings ahead of most of its competitors. Do you think this positive news is a sign of more good casino, gambling, and resort earnings news, particularly for Macau and Las Vegas casinos?
To help you with your own analysis, here is a list of the nine top performing casino and resort stocks over the past year.
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List sorted by share price performance (year).
1. Melco Crown Entertainment Ltd. (MPEL): Market cap of $7.98B. Share prices are up 287.27% on the year. It is a developer, owner and, operator of casino gaming and entertainment resort facilities focused on the Macau market. Melco Crown Gaming is one of the six companies licensed, through concessions or sub-concessions, to operate casinos in Macau. It owns and operates City of Dreams, Altira Macau, Mocha Clubs and Taipa Square Casino. Its other projects include City of Dreams Phase II, Macau Studio City Project and Macau Peninsula Site.
2. Wynn Resorts Ltd. (WYNN): Market cap of $20.24B. Share prices are up 96.12% on the year. It is a developer, owner and operator of destination casino resorts. It owns and operates two destination casino resorts. In Las Vegas, Nevada, it owns and operates Wynn Las Vegas, on the Strip and Encore at Wynn Las Vegas. In the Macau Special Administrative Region of the People’s Republic of China (Macau) it owns and operates Wynn Macau and Encore at Wynn Macau.
3. Las Vegas Sands Corp. (LVS): Market cap of $32.91B. Share prices are up 81.25% on the year. It owns and operates The Venetian Resort Hotel Casino, The Palazzo Resort Hotel Casino and The Sands Expo and Convention Center in Las Vegas, Nevada, and the Sands Macao, The Venetian Macao Resort Hotel, the Four Seasons Hotel Macao, Cotai Strip (the Four Seasons Hotel Macao, which is managed by Four Seasons Hotels Inc.) and the Plaza Casino (together with the Four Seasons Hotel Macao, the Four Seasons Macao) in the Macau Special Administrative Region (Macau) of the People’s Republic of China (China).
4. Penn National Gaming Inc. (PENN): Market cap of $3.18B. Share prices are up 69.52% on the year. It is a diversified, multi-jurisdictional owner and manager of gaming and pari-mutuel properties. It owns Hollywood Casino Bay St. Louis and Boomtown Biloxi, CRC Holdings, Inc., the Bullwhackers properties, Hollywood Casino Corporation, Argosy Gaming Company, Black Gold Casino at Zia Park, and Sanford-Orlando Kennel Club), greenfield projects such as at Hollywood Casino at Penn National Race Course and Hollywood Slots Hotel and Raceway, and Hollywood Casino Perryville.
5. Ameristar Casinos Inc. (ASCA): Market cap of $740.42M. Share prices are up 66.64% on the year. It is a developer, owner and operator of casino entertainment facilities in local and regional markets. Its portfolio of casinos consists of: Ameristar Casino Resort Spa St. Charles (serving the St. Louis, Missouri metropolitan area); Ameristar Casino Hotel Kansas City (serving the Kansas City metropolitan area); Ameristar Casino Hotel Council Bluffs (serving Omaha, Nebraska and southwestern Iowa); Ameristar Casino Resort Spa Black Hawk (serving the Denver metropolitan area); Ameristar Casino Hotel Vicksburg (serving Jackson, Mississippi and Monroe, Louisiana); Ameristar Casino Hotel East Chicago (serving the Chicagoland area); and Cactus Petes Resort Casino and The Horseshu Hotel and Casino in Jackpot, Nevada (serving Idaho and the Pacific Northwest).
6. MGM Resorts International (MGM): Market cap of $7.55B. Share prices are up 54.04% on the year. It is engaged in gaming, hospitality and entertainment. It owns and operates the casino resorts in Las Vegas, Nevada: Bellagio, MGM Grand Las Vegas, The Mirage, Mandalay Bay, Luxor, New York-New York, Monte Carlo, Excalibur, and Circus Circus Las Vegas. Operations at MGM Grand Las Vegas include management of The Signature at MGM Grand Las Vegas, a condominium-hotel consisting of three towers. Other Nevada operations include Circus Circus Reno, Gold Strike in Jean, and Railroad Pass in Henderson. It also owns the Primm Valley Golf Club at the California state line, which is operated by a third party under a lease agreement. The Company and its local partners own and operate MGM Grand Detroit in Detroit, Michigan. It also owns and operates two resorts in Mississippi: Beau Rivage in Biloxi and Gold Strike Tunica. It also owns Shadow Creek, an exclusive world-class golf course located approximately ten miles north of its Las Vegas Strip resorts, Primm Valley Golf Club at the California/Nevada state line and Fallen Oak golf course in Saucier, Mississippi.
7. Pinnacle Entertainment Inc. (PNK): Market cap of $920.13M. Share prices are up 46.69% on the year. It is an owner, operator and developer of casinos and related hospitality and entertainment facilities. It operates seven domestic casinos, including L’Auberge du Lac in Lake Charles, Louisiana; Lumiere Place; Boomtown New Orleans; Belterra Casino Resort; Boomtown Bossier City; Boomtown Reno and Casino Magic Argentina.
8. Vail Resorts Inc. (MTN): Market cap of $1.64B. Share prices are up 28.37% on the year. Its Mountain segment owns and operates five ski resort properties, as well as ancillary businesses, including ski school, dining and retail/rental operations, which provide a resort experience to the clients. Its Lodging segment owns and/or manages a collection of luxury hotels under its RockResorts brand, as well as other lodging properties and a number of condominiums located in proximity to the Company's ski resorts, the Grand Teton Lodge Company, which operates three destination resorts at Grand Teton National Park, Colorado Mountain Express, a resort ground transportation company, and golf courses. Its Real Estate segment owns and develops real estate in and around the Company’s resort communities.
9. Boyd Gaming Corp. (BYD): Market cap of $763.49M. Share prices are up 12.17% on the year. It is a diversified operator of 15 wholly owned gaming entertainment properties and one controlling interest in a limited liability company that operates Borgata Hotel Casino and Spa (Borgata) in Atlantic City, New Jersey. It has gaming operations in Nevada, Illinois, Louisiana, Mississippi, Indiana and New Jersey. It also owns and operates Dania Jai-Alai, which is a pari-mutuel jai-alai facility with approximately 47 acres of related land located in Dania Beach, Florida, a travel agency in Hawaii, and a captive insurance company, also in Hawaii, that underwrites travel-related insurance. Additionally, it own 85 acres of land on the Las Vegas Strip, where its multibillion dollar Echelon development project is located.