Macau stocks jumped this week after a relaxation in travel restrictions, but investors should probably wait for more consistent positive profit forecasts before piling in, Zacks Investment said.
The stocks surged after China indicated that it would reinstate electronic visas and group travel tours in the first significant easing since the borders were reopened following the initial Covid lockdown.
Numerous equities with ties to gambling and casinos stole the show giving investors significant returns this week. Las Vegas Sands, Wynn Resorts, and MGM Resorts International are the three equities that saw a price surge.
The most recent news and events that have an impact on equities and the financial markets are discussed by the Zacks Equity Research experts daily and these three equities were the centre of discussion in the Analyst Blog released by Zacks.com.
Zacks Investment put out a note following the surge in gaming stocks with analysts upgrading their revenue growth prospects for Macau. Las Vegas Sands, Wynn Resorts, and MGM Resorts International have operations in Macau. In addition, all three carry a Zacks Rank #3.
Stock in LVS has performed exceptionally well recently, while shares in MGM have lagged.
Las Vegas Sands shares rose by more than 11% this week, Wynn Resorts stock price closed up 12% while MGM soared to a price of $31.50, eventually dropping and ending the day down by only 0.2%.
Zacks report concluded that any of these three options would provide investors access to the money that will soon be pouring into Macau. However, a cautious approach is warranted. With the pandemic still going strong, the next few months could bring a lot of surprises. One smart move would be to hold off until profit forecast revisions have been consistently positive.
THE 300 SPARTANS:
After triumphing in key locations across Asia and Europe, AGS is flying 300 top affiliates to Malta, for an all inclusive deluxe trip. The event will happen alongside SiGMA, 14-18th November, during SiGMA Europe.
Read more about the 300 Spartans here.