While most of the world already turned the page on 2024’s arrival three weeks ago, the Chinese are getting set to celebrate the new year now. But while celebrations are already in the works, there’s little to celebrate for casino stocks with exposure to Macau. In fact, many of them are down in Monday afternoon’s trading. MGM Resorts (NYSE:MGM) is down modestly, while Wynn Resorts (NASDAQ:WYNN) fell just over 2%. Las Vegas Sands (NYSE:LVS) slipped about the same as Wynn, and Melco Resorts (NASDAQ:MLCO) is down over 4%. The only exception is Studio City International (NYSE:MSC), which is up fractionally in the session.
It’s looking like a catastrophic day, but on the surface, things should be running smoothly. China isn’t having a great run of things right now, based on a report from Jefferies, but that’s not the same for Greater Macau. In fact, the Macau casino market is holding up wonderfully, and with the Chinese New Year about to kick off in just a couple weeks, on February 10, the result is surprisingly impressive. Reports noted that daily revenue out of Macau was actually a little higher in the week ending January 21 than it was in the week ending January 14. Moreover, noted Jefferies analyst David Katz, that’s about the same level it was in the first week of January as well.
A Big New Year for China
This year will be unusual for China, reports note. This is the first Chinese New Year celebration that will come without any COVID-19-related restrictions in around three years. That’s got analysts watching forward bookings carefully to see if there’s some life in this sector. While the macroeconomic picture isn’t looking that great and potentially threatening to dampen the festivities, there are some signs of life in the well-heeled business class that routinely shows up in Macau anyway. But with a Reuters report noting that China’s economy is starting to look like the Great Depression, that may not bode well going forward.
Which Casino Stocks are a Good Buy Right Now?
Turning to Wall Street, WYNN stock is the laggard in the field right now. A Strong Buy-rated stock with a $112.58 average price target, its shares offer investors a 21.97% upside potential. Meanwhile, MLCO stock is the leader, with a 63.35% upside potential on this Moderate Buy-rated stock’s average price target of $11.90.
