Top U.S. Gaming Stocks to Buy Now: PENN, Red Rock & Caesars

Meta Title:

In its debut coverage of the U.S. gaming sector, JPMorgan highlights three high-conviction names—PENN Entertainment (PENN), Red Rock Resorts (RRR), and Caesars Entertainment (CZR)—as the best regional and locals plays for 2025. With macro headwinds and policy uncertainty pinching valuations, these operators stand out for their development pipelines, asset quality, and capital returns.

Market Dynamics: Why Gaming 2.0 Is Ripe for Selective Bets

Regional casinos and local markets benefit from limited new supply and strong balance sheets, while Strip and online segments face tariff-driven cost pressures and shifting regulations. After a pullback in valuations, JPMorgan sees “Gaming 2.0” as offering tactical upside:

• Macro Risks: Inflation, higher borrowing costs, and trade levies dampen discretionary spend.

• Regulatory Uncertainty: Online gaming and sports betting face evolving tax and licensing regimes.

• Valuation Reset: Sector multiples now reflect near-term challenges, rewarding differentiated balance‐sheet strength and growth visibility.

Why These Three Stocks Shine

PENN Entertainment (NASDAQ: PENN)

• $1 billion project pipeline over the next two years

• $325 million share buyback (~14% of market cap)

• Declining losses at ESPN BET and $65 million+ in annual market-access fees

Red Rock Resorts (NASDAQ: RRR)

• Visibility into 2026-27 EBITDA from new property openings

• Premium, supply-constrained local assets delivering consistent returns

• Potential $20-30 million annual EBITDA boost from tipped-income tax relief

Caesars Entertainment (NASDAQ: CZR)

• $3 billion cumulative net cash flow by year-end 2027 (≈50% of market cap)

• Only omnichannel operator with a profitable digital segment

• Strong valuation support even excluding long-leasehold assets

How to Track Their Financial Health

Maintaining visibility into these companies' balance sheets and credit profiles is crucial. Use Financial Modeling Prep's APIs to monitor key metrics in real time:

• Review debt levels and credit ratings via the Company Rating & Information API for up-to-date leverage assessments.

• Track debt/EBITDA and profitability trends with the Ratios TTM Statement Analysis API to spot early signs of financial stress or improvement.

Actionable Entry Points

1. Buy on Pullbacks: Accumulate shares when regional risk-off events push prices lower than fundamental values.

2. Watch Project Milestones: Look for updates on new casino openings and share-buyback progress as catalysts.

3. Monitor Regulatory News: Tax relief and sports-betting authorizations can rapidly shift earnings outlooks.

By combining sector-specific insights with live credit and ratio data, investors can confidently navigate the U.S. gaming landscape and capture upside in these premier regional operators.