Broadly speaking, casino stocks aren’t performing well this year, but when investors evaluate the group, they’re showing a preference for less indebted operators.
In a new report to clients, Macquarie analyst Chad Beynon says leverage is reemerging as an “important differentiator” in the gaming, lodging and leisure space as market participants increasingly emphasize factors such as balance sheet sturdiness, free cash flow generation and refinancing risk. Among land-based casino operators, Monarch Casino & Resort (NASDAQ: MCRI) checks those boxes and it has rewarded investors with a 19%…