In the current financial climate, larger-cap stocks are forging ahead, outperforming their smaller counterparts in a trend that is mirrored in the realm of small-cap gaming equities.
One possible silver lining to the lag exhibited by smaller gaming stocks, however, is the emergence of considerable valuation gaps. With smaller gaming shares trailing behind their larger-cap competitors, they have inadvertently created the potential for deep value investments. Market analyst, David Bain, drew attention to this prospect in a recent report to his clientele, identifying seven distinct candidates for deep investment value within the small-cap gaming sector.
“Despite the overall market trend, these seven deep-value stocks stand uniquely as they are trading significantly below their 5-year historic valuations. Seemingly incongruous to this is that most are demonstrating higher projected growth,” observed Bain. Included in this grouping are both casino operators and slot machine manufacturers who, in spite of varying macroeconomic signals, continue to outperform consensus estimates.
Among the named are regional casino operators Century Casinos and Full House Resorts. The recent success of Full House’s newly launched Temporary at American Place certainly has not gone unnoticed. Bain points out the venue’s consistent market share gain, alongside incoming additions such as a fine dining option and further operational months for the newly incorporated Circa sportsbook.
Bain also highlights Full House’s upcoming Colorado-based Chamonix casino hotel and the operator’s cost-saving strategies in its other venues. As for Century Casinos, though its shares dipped recently, Bain assures that the payoff from recent expansions to the operator’s portfolio will come, standing by the company’s solid balance sheet and superlative affordability of shares.
As an oft-overlooked operator, Golden Entertainment, the owner of The Strat, fell into Bain’s focus. He points out that the true value of the company’s real estate assets are often underappreciated in share pricing. The gaming company possesses expansive real estate assets, including undeveloped properties in prime locations such as the Las Vegas Strip.
In conclusion, though larger-cap stocks are holding the financial limelight this year, investment opportunity emerges from the shadow of the small-cap gaming sector. The potential for profit is often wrapped in underestimated stocks and under-appreciated assets such as Golden Entertainment’s untapped real estate.
After reading all this, if the glitz and glamour of the casino world intrigues you, and you’re curious to see what the virtual iteration of it is like, you might want to explore online casinos. Here at West Island Blog, we’ve curated a list of this month’s top online casinos for you to check out. From the comfort of your home, you can delve into the exhilarating world of online gaming, and who knows— you might be the next big winner!
