|Gaming stocks are outperforming the mainstream trading markets on Wall Street, due to increasing play at casino table games and an upswing in leisure travel. |
'The gaming stocks we follow are outperforming the S&P 500 2-1 and have for the past month,' said Joe Greff, gaming analyst at Fulcrum Global Partners, an independent Wall Street investment research firm.
Last week, the Dow Jones casino index increased 2.5%, closing at 288, twice the increase in the Standard and Poor's 500 Index, which increased 1.26%. The casino index opened the week at 284 and the S&P opened at 985.70.
For the year, the Dow Jones casino index has increased by 20 percent from an opening of 240, outstripping the S&P 500, which opened at 879.82, by 8 percentage points.
Market analysts attribute the casino sector’s performance to industry fundamentals, predicting a good summer and fall for Las Vegas.
'We believe there is some upside to the second half estimates for the Las Vegas centric-operators. In our view, overall demand on the Strip appears to be turning around,' Greff said.
'June has been an encouraging month in terms of operator trends. Missouri was the only jurisdiction that was a clunker. New Jersey, Iowa, Las Vegas room rates and operator fundamentals in general all seem to be doing better,' Greff said.