Favorites from JPMorgan in the casino stock sector include Penn and Red Rock
In the dynamic world of gaming and entertainment, three names stand out as top performers: Penn Entertainment (NASDAQ: PENN), Red Rock Resorts (NASDAQ: RRR), and Caesars Entertainment (NASDAQ: CZR). These companies are thriving amidst the ongoing expansion of the US gaming industry, driven by growth in sports betting, i-gaming, and expanding legalization.
Penn Entertainment (PENN)
Penn's stock currently trades near the $17 range, with a market cap around $2.58 billion. Despite some volatility, the company continues to maintain relevance due to its gaming and entertainment operations in the U.S. Market trends indicate that casino stocks like Penn benefit from rising digital sales and persistent demand, even with consumer confidence fluctuations.
Red Rock Resorts (RRR)
Red Rock Resorts operates numerous casinos in the Las Vegas regional market, including Durango Casino & Resort. Its stock price recently hovered around $58, reflecting moderate trading volumes and a somewhat leveraged balance sheet. The company benefits from the robust US commercial gaming environment, which has averaged over 7% revenue growth across recent quarters.
Caesars Entertainment (CZR)
Caesars remains an attractive stock with fundamentals supported by growth in sports betting and i-gaming. Despite challenges in consumer confidence, Caesars’ digital sales have increased significantly, with the industry's overall digital segment growing by 20% in Q1 2025. Gaming stocks including Caesars trade at attractively low valuations, presenting potential upside.
The US commercial gaming revenue has been substantially outpacing GDP growth, averaging around 7.2%-7.3% over the last six quarters. Digital and mobile betting innovations are key market growth drivers, alongside ongoing casino legalization and rising global acceptance of gaming entertainment.
Analyst Daniel Politzer, who initiated coverage on 19 gaming and leisure equities on June 23, 2025, rates Caesars Entertainment, Penn Entertainment, and Red Rock Resorts as his top casino stock ideas, giving each an "overweight" rating. Politzer praises Caesars for being the sole omnichannel operator to build a profitable digital business. Red Rock Resorts' year-to-date performance easily surpasses the 2025 returns of various small-cap gauges in which the stock is included.
In sum, Penn Entertainment, Red Rock Resorts, and Caesars Entertainment benefit broadly from strong industry expansion in digital and sports betting segments, favorable legalization trends, and resilient consumer demand. Their stock performances show some variance but underpin a positive outlook driven by sustained commercial gaming revenue growth and evolving market dynamics through 2025.
This synthesis reflects the most recent publicly available data as of August 2025, including market trading patterns and sector growth forecasts. It's important to note that while Red Rock Resorts' shares are up nearly 12% year to date, making it one of the better performing casino stocks, shares of Penn Entertainment are down 14% year to date, indicating the operator could get favorable prices on its $325 million share repurchase program.
- The financial performance of Penn Entertainment, Red Rock Resorts, and Caesars Entertainment in the casino-and-gambling industry is noteworthy, with their stocks trading in the ranges of $17, $58, and not specified (Caesars) respectively, showcasing varying trends but positive outlooks.
- Amidst the expansion of US commercial gaming, particularly the growth in sports betting, i-gaming, and digital sales, these three prominent casino personalities - Penn Entertainment, Red Rock Resorts, and Caesars Entertainment - are capitalizing on casino-culture and the robust casino-games market, with active involvement in Las Vegas and regional markets.
- As the US commercial gaming sector continues to outpace GDP growth by an average of 7.2%-7.3% over the last six quarters, fueled by digital and mobile betting innovations, growing legalization, and global acceptance, these top-performing companies are poised for further growth.
- In a recent analysis, Daniel Politzer, a casino-gaming expert, ranked Caesars Entertainment, Penn Entertainment, and Red Rock Resorts as his top casino stock ideas, attributing Caesars' success to its omnichannel gaming operations that boast a profitable digital business, and lauding Red Rock Resorts' outstanding year-to-date performance relative to small-cap gauges.
