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3 Gaming Stocks That Outperformed Industry in the Past 6 Months
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Last year, gaming stocks suffered due to dismal Macau visitation. In the past few months, the industry is benefiting from improving visitation and gaining from positive momentum in Macau’s gaming revenues. Moreover, robust demand for sports betting is aiding the industry.
In the past six months, the industry has increased 24.3% compared with the S&P 500’s increase of 12.4%.
Improving Revenues
In May, Macau’s gross gaming revenues (GGR) surged 365.9% year over year to MOP$15.57 billion (US$1.93 billion). For the first five months of 2023, GGR rose 172.9% year over year. Notably, companies continue to focus on the level of services and staffing with selective amenities and enhanced safety and social-distancing protocols in the gaming floor to welcome gamers. However, easing of restrictions and investments will boost gaming revenues in Macau. In the next 10 years, six casino companies will invest nearly $15 billion.
Gaming companies in the United States continue to perform better than expected. In 2022, sports betting increased 72.7% year over year. In first-quarter 2023, U.S. commercial gaming revenues reached $16.6 billion. This marks the industry’s eighth straight record-breaking quarter. The U.S. gaming industry will continue to improve.
With the help of the Zacks Stock Screener, we have shortlisted three gaming stocks that carry a favorable Zacks Rank and have gained more than 20% in the past six months, outperforming the sector and the S&P 500. These firms include DraftKings Inc. (DKNG - Free Report) , Playtika Holding Corp. (PLTK - Free Report) and Corsair Gaming, Inc. (CRSR - Free Report) . What’s favoring these stocks and do they have more upside left? Let’s delve deeper.
3 Market-Beating Gaming Stocks
DraftKings: This Boston, MA-based company carries a Zacks Rank #2 (Buy). Shares of the company have skyrocketed 107% in the past six months. DKNG is benefiting from increasing global demand for online gambling and sports betting. DraftKings is live with mobile sports betting in 20 states that collectively represent approximately 42% of the U.S. population, following the launch of its online Sportsbook in Ohio on Jan 1, 2023. The company operates iGaming in five states, representing approximately 11% of the U.S. population.
Playtika Holding: The company develops mobile games in the United States, Europe, the Middle East, Africa, the Asia Pacific and internationally. PLTK owns a portfolio of casual and casino-themed games. Shares of the Zacks Rank #1 company have gained 31% in the past six months. It benefits from average daily paying users and average payer conversion and continues to invest in its technology.
The company earnings in 2023 is likely to witness growth of 26.1%. The company’s earnings in the long-term is likely to grow 12.8%. In the past 60 days, earnings estimate for 2023 witnessed upward revisions of 10.1%.
Corsair Gaming: Headquartered in Milpitas, CA, Corsair Gaming is a leading global developer and manufacturer of high-performance gear and technology for gamers, content creators and PC fanatics. Shares of the Zacks Rank #1 company have gained 22.7% in the past six months. The company gains from increased focus on creating innovative gaming and streaming gear such as gaming mice, keyboards, headsets and performance controllers.
In the past 60 days, earnings estimates for 2023 have increased 3.4% to 60 cents. CRSR’s 2023 earnings and sales are anticipated to increase 233.3% and 7% each from the respective year-ago reported numbers.
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3 Gaming Stocks That Outperformed Industry in the Past 6 Months
Last year, gaming stocks suffered due to dismal Macau visitation. In the past few months, the industry is benefiting from improving visitation and gaining from positive momentum in Macau’s gaming revenues. Moreover, robust demand for sports betting is aiding the industry.
In the past six months, the industry has increased 24.3% compared with the S&P 500’s increase of 12.4%.
Improving Revenues
In May, Macau’s gross gaming revenues (GGR) surged 365.9% year over year to MOP$15.57 billion (US$1.93 billion). For the first five months of 2023, GGR rose 172.9% year over year. Notably, companies continue to focus on the level of services and staffing with selective amenities and enhanced safety and social-distancing protocols in the gaming floor to welcome gamers. However, easing of restrictions and investments will boost gaming revenues in Macau. In the next 10 years, six casino companies will invest nearly $15 billion.
Gaming companies in the United States continue to perform better than expected. In 2022, sports betting increased 72.7% year over year. In first-quarter 2023, U.S. commercial gaming revenues reached $16.6 billion. This marks the industry’s eighth straight record-breaking quarter. The U.S. gaming industry will continue to improve.
With the help of the Zacks Stock Screener, we have shortlisted three gaming stocks that carry a favorable Zacks Rank and have gained more than 20% in the past six months, outperforming the sector and the S&P 500. These firms include DraftKings Inc. (DKNG - Free Report) , Playtika Holding Corp. (PLTK - Free Report) and Corsair Gaming, Inc. (CRSR - Free Report) . What’s favoring these stocks and do they have more upside left? Let’s delve deeper.
3 Market-Beating Gaming Stocks
DraftKings: This Boston, MA-based company carries a Zacks Rank #2 (Buy). Shares of the company have skyrocketed 107% in the past six months. DKNG is benefiting from increasing global demand for online gambling and sports betting. DraftKings is live with mobile sports betting in 20 states that collectively represent approximately 42% of the U.S. population, following the launch of its online Sportsbook in Ohio on Jan 1, 2023. The company operates iGaming in five states, representing approximately 11% of the U.S. population.
DKNG’s 2023 earnings and sales are anticipated to increase 40.5% and 43%, respectively, from the year-ago reported figures. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Playtika Holding: The company develops mobile games in the United States, Europe, the Middle East, Africa, the Asia Pacific and internationally. PLTK owns a portfolio of casual and casino-themed games. Shares of the Zacks Rank #1 company have gained 31% in the past six months. It benefits from average daily paying users and average payer conversion and continues to invest in its technology.
The company earnings in 2023 is likely to witness growth of 26.1%. The company’s earnings in the long-term is likely to grow 12.8%. In the past 60 days, earnings estimate for 2023 witnessed upward revisions of 10.1%.
Corsair Gaming: Headquartered in Milpitas, CA, Corsair Gaming is a leading global developer and manufacturer of high-performance gear and technology for gamers, content creators and PC fanatics. Shares of the Zacks Rank #1 company have gained 22.7% in the past six months. The company gains from increased focus on creating innovative gaming and streaming gear such as gaming mice, keyboards, headsets and performance controllers.
In the past 60 days, earnings estimates for 2023 have increased 3.4% to 60 cents. CRSR’s 2023 earnings and sales are anticipated to increase 233.3% and 7% each from the respective year-ago reported numbers.