Are These 2 Gambling Stocks Poised for a Comeback?
With the S&P 500 down 11% year to date, now is a great time to shop for deals in the market. And while the casino industry may face challenges from inflation and a possible recession, many companies still look poised for long-term success. Let's explore why MGM Resorts International (NYSE: MGM) and Penn Entertainment (NASDAQ: PENN) should be on your investment watchlist.
Down 22% so far this year -- twice as much as the market -- MGM Resorts could be an excellent pick for investors who want to bet on a top gambling stock at a substantial discount to previous highs. The company's industry-leading assets and inflation-resistant business model can help it thrive in this economic environment.
With the U.S. inflation rate hitting 8.5% in July, consumers and businesses are feeling the pinch from higher costs and eroding spending power. But for MGM, this challenge may have a silver lining. As a hospitality company, much of its biggest capital outflows (such as building hotels and resorts) are fixed, not variable, as the hotels have already been constructed, so MGM is not as heavily influenced by inflation.
Source Fool.com
