Like most casino stocks, shares in Bally’s (formerly Twin River Worldwide Holdings) weren’t held down for long after the initial coronavirus outbreak. Its shares fell from around $30 per share to single digits when the virus first hit the U.S. However, it quickly recovered in the months that followed.
During its recovery, the company took advantage of the headwinds, expanding its portfolio of land-based casinos and adopting the Bally’s moniker. This, coupled with its expansion into i-gaming (online casinos and sportsbooks) and the “vaccine recovery,” enabled shares to start skyrocketing. Trading for around $25 per share in early November, it hit a high of $75.92 per share by March.
Since then, things, of course, have cooled. Even before the Delta variant news, shares sold off as investors realized the company’s valuation had gotten out of hand. With this latest outbreak news, BALY stock is experiencing additional downward pressures. Yet, if you missed out on its first epic run, this may be the perfect time to enter a position, ahead of Delta variant fears possibly subsiding.
Its valuation is ideally situated between cheaper casinos like Boyd Gaming and larger casinos like MGM Resorts International. Add in its growing exposure to i-gaming, coupled with its track record of making opportune acquisitions of casino properties, and this may be one of the best names to own in the gaming sector.