#7 - Eldorado Resorts (NASDAQ:ERI)
Eldorado Resorts (ERI) Are you ready for some football? If you’re like many Americans, you’re more than ready. But none more than the percentage of global sports fans who enjoy wagering on live sports. Eldorado Resorts (NASDAQ:ERI) by itself would be a less-than-exciting casino play. However, Eldorado is in the process of buying out Caesars Entertainment Corporation. When the $17.3 billion buyout is complete ERI will have access to Caesars network of sports books in 29 casinos in nine U.S. states.
This becomes even more significant when you consider that Caesars is the “official casino partner” of the National Football League. And CZR is also the official supplier of betting odds for both ESPN and Turner Sports.
Eldorado is still a relative newcomer to the casino sector. And because the company leases many of its properties, it’s unclear of how much liquidity they actually have. ERI stock has been among the most volatile that were soaring during the long bull run. But with the stock down 80%, this is the ultimate risk-reward stock.
Admittedly, casinos may be one of the last of the businesses to open up in the U.S. economy. And sports books, particularly through online gambling, make up only a small part of the casino’s revenue. But when live sports, and Fantasy sports leagues start back up, it should provide Eldorado with a nice catalyst that few casinos can match.
About Eldorado Resorts
Eldorado Resorts, Inc operates as a gaming and hospitality company in the United States. It owns and operates Eldorado Resort Casino Reno, a hotel, casino, and entertainment facility; Silver Legacy Resort Casino, a themed hotel and casino; Circus Circus Reno, a hotel-casino and entertainment complex; Eldorado Resort Casino Shreveport, a hotel and tri-level riverboat dockside casino; Mountaineer Casino, Racetrack & Resort, a hotel, casino, entertainment, and live thoroughbred horse racing facility; Presque Isle Downs & Casino, a casino and live thoroughbred horse racing facility; and Eldorado Gaming Scioto Downs, a modern racino.
Read More - Current Price
- $37.60
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
As the calendar moves closer to May 1, the cries for the U.S. economy to reopen are getting louder. Public opinion should not, and ultimately will not, dictate if when the economy begins its slow climb back to health. That should be left to the data that is now starting to come in.
What we know is that however, this recovery occurs, it is unlikely to be the “V-shaped” recovery that some analysts are hoping for. But that doesn’t mean it won’t be a “V-shaped” recovery for some stocks. In this presentation, we’re showing you stocks in a variety of categories. Some of these stocks, such as biotech stocks, are having a good year so far. Other stocks have been highly oversold and even if demand doesn’t come all the way back immediately they should be well-positioned for growth in a post-pandemic world.
And don’t forget, as far as we know at this point, 2020 is still an election year. And that means that many officeholders who are fighting for re-election will be eager to reopen the economy to help them in their respective races.
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