Casino Stocks Rise As Macau Continues Hot Streak

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Wynn Resorts (WYNN), Las Vegas Sands (LVS) and other casino stocks rose Monday as March Macau gambling revenues beat exceptions.

Gambling revenue jumped 18% to $2.6 billion, according to government data released over the weekend, the eighth straight month of year-over-year growth after a long slump. Analysts only expected growth of 12% to 16%.

Wynn Resorts shares jumped 2% to 117.01 in premarket trading on the stock market today, suggesting that the stock will open extended from a 109.60 buy point.

Las Vegas Sands shares climbed 1.5% early to 57.92, as Sands builds the right side of a base.

Wynn and Sands opened new Macau casinos in late 2016.

IBD'S TAKE: The casinos' rise Monday morning highlights why stocks tend to rise and fall with their industry groups. Las Vegas Sands, Wynn and MGM execs worked just as hard in 2015 and 2016, but shares struggled due to business conditions outside their control. Now that Macau is booming again, so are the stocks.

MGM Resorts (MGM) rose about 1% as that stock forms the right side of a base. MGM will likely climb open above its 50-day line.

Asian casino operator Melco Crown Entertainment (MPEL) climbed 2%. It has a messy stock chart but has an actionable buy point at 18.37.

RELATED:

Casinos Rally As Macau, Nevada Gaming Revenues Hit Multiyear Highs

Weak Macau Gaming Revenues Hit Las Vegas Sands, Wynn Resorts, MGM

MGM Resorts, Melco Crown Tumble As Earnings Revivals Fall Short

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