Certain Small-Cap Gaming Stocks Exhibit Substantial Value Characteristics.
Small-cap gaming stocks have lagged behind their larger counterparts this year, creating wide valuation gaps and opportunities for investors. Analyst David Bain of B. Riley has highlighted seven small-cap gaming stocks that he considers to be trading at deep value. These stocks are trading well below their historical enterprise value/earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) valuations and at a significant discount to their peer group. Despite this disconnect, most of them are showing higher projected EBITDA growth for the year 2024.
Some of the small-cap gaming stocks with deep value characteristics include:
- Century Casinos (NASDAQ: CNTY): This regional casino operator recently added properties to its portfolio, which may take some time to yield results. However, it has a strong balance sheet and inexpensive shares.
- Full House Resorts (NASDAQ: FLL): Full House Resorts operates Temporary at American Place in Waukegan, Illinois, which has been gaining market share. The company has upcoming catalysts such as adding fine dining options and expanding the months of operation for its Circa sportsbook.
- Golden Entertainment (NASDAQ: GDEN): Golden Entertainment owns the land on which its casinos are located, including some undeveloped property on the Las Vegas Strip. The analyst believes that the market is not fully valuing the company's real estate assets, which could generate significant shareholder value if divested.
These small-cap gaming stocks represent opportunities for investors looking for potentially undervalued companies in the gaming industry.