After a fantastic 2017, Casino shares are in the list of worst performers in 2018. They have almost given up all of last year’s gain.
Earlier it was US-China trade war but with time it worse as the summer time come on.
Different Casino Operators like Penn National Gaming and Eldorado, which have little to no exposure in Las Vegas and Macau are getting roasted pretty badly.
MGM Resorts International, the largest operator in Las Vegas by properties, fell around 1.1% Thursday to $25.95. MGM Resorts and Caesars executive reiterated to the Wall Street Analyst this week.
“We Met with management teams from MGM, Caesars and Peen coming away feeling reassured that recent weakness in the stocks is less a reflection of a change, weakening in underlying fundamentals and more commonly attributed to technicals, interest rates, macro,” JP Morgan Analyst Joseph Greff said in a note on Tuesday.
Penn National shares, it runs two properties in Las Vegas have fallen 22% since July. And Penn Nationals generates main revenue from Midwest and South.
Stifel Analyst, Steven Wieczynski on Wednesday called the selfoff in Penn National “irrational” and many recommended investors buy the shares.
Brian McGill gaming analyst for Telsey Advisory group, blamed the sharp stock price decline on scientific games.