Are you considering investing in Red Rock Resorts, Inc. (RRR) stock? As with any investment, it’s important to do your research and analyze the company’s financials and performance before making a decision. Let’s take a closer look at Red Rock Resorts to determine if it’s a good stock to buy.
Background
Red Rock Resorts is a gaming, development, and management company based in Las Vegas, Nevada. The company operates 21 properties across the United States, including casinos, hotels, and entertainment venues. Some of its well-known properties include the Red Rock Casino Resort & Spa and the Palms Casino Resort.
Financial Performance
One key factor to consider when deciding whether or not to invest in a company is its financial performance. Looking at Red Rock Resorts’ recent financial statements, there are some positive signs.
In its most recent quarter (Q1 2021), the company reported net revenues of $352.6 million, up from $303.3 million in Q1 2020. Additionally, net income attributable to RRR was $73 million in Q1 2021 compared to a net loss of $352 million in Q1 2020.
Risks
While there are positives to consider with Red Rock Resorts’ financial performance, there are also some risks to keep in mind. One major risk is the impact of COVID-19 on the gaming industry as a whole. While vaccines are being rolled out and restrictions are easing up in some areas, it may still take some time for the industry to fully recover from the pandemic.
Industry Trends
It’s also important to look at industry trends when considering an investment in a gaming company like Red Rock Resorts. According to a report by ResearchAndMarkets.com, the global casino gaming market is expected to grow at a compound annual growth rate of 9.2% from 2021 to 2026. This growth is driven by factors such as increasing demand for online gaming and the legalization of gambling in some regions.
Conclusion
So, is Red Rock Resorts a good stock to buy? As with any investment, there are risks and potential rewards to consider.
While the impact of COVID-19 on the gaming industry is a major risk, there are also positive signs in Red Rock Resorts’ financial performance and industry trends. Ultimately, it’s up to you to weigh these factors and make an informed decision about whether or not to invest in RRR stock.
- Pros: Positive recent financial performance, expected growth in the global casino gaming market.
- Cons: Impact of COVID-19 on the gaming industry, potential for volatility in the stock market.
Remember to do your own research and consult with a financial advisor before making any investment decisions.