Is Now The Right Time To Bet On Red Rock Resorts, Inc. (RRR)?

Red Rock Resorts, Inc. (RRR) shares saw a recent bid of $24.40 and 865.6TH shares have exchanged hands in the recent trading session, yielding a 2.09% gain over the past week. The stock price increased 2.56% or $-0.61 versus $23.79 at the end of the prior session. This change led market cap to move at $2.84B, putting the price -1.09% below the 52-week high and 18.56% above the 52-week low. The company’s stock has a normal trading capacity of 654.73K shares while the relative volume is 1.32.

To stay one step ahead we extended our research by comparing different price targets. The stock notched a 12-month high of $25.90 while $27.00 target is by far the most aggressive out of analysts who are currently evaluating the company, $1.1 higher than the next highest 52-week price estimate. The lowest 12-month price target for the shares is $24.00, which would be decrease of about -2% of its current value. The mean target of $26.00 should be compared with the price when the stock was languishing around $20.58 a share. And it remains to be seen which target price RRR can achieve without sacrificing much as the company is holding a 10.86% gain for the past twelve months.

By historical standards, Red Rock Resorts, Inc. remains a cheap stock. The company’s current price-earnings ratio amounts to 14.28 times earnings, below the average P/E ratio of 43.95 times earnings. For now, Red Rock Resorts, Inc. is the toast of Wall Street as its ABR stands at 3.00 with 6 out of 12 analysts rating the stock a buy. Over the short term, some market observers may have noticed that Red Rock Resorts, Inc. has a 5.31% short float with 15 days to cover. It becomes significant when you consider how many shares are shorted versus the average daily volume, means how many days to cover those short shares at that volume. Red Rock Resorts, Inc. has far performed well this year, with the share price up 5.22% since January. Over the past 2 quarters, the stock is up 3.74%, compared with a gain of nearly 12.60% for 3 months and about 1.54% for the past 30 days.

Last time, the company failed Wall Street by reporting EPS of $0.30, smashing the consensus of $0.35 per share. Revenue for the quarter also killed consensus, coming in at $417.73M, compared to the consensus of 402.99M. Nonetheless, from here on out, earnings per share forecasts for the current quarter are $0.27. The company is expected to report EPS as high as $0.36 and as low as $0.16 per share. Similarly, full-year EPS forecasts have ranged between $0.89 and $1.30. The mean EPS estimate is $1.14. On the other side, sales forecasts for the current quarter are $399M. The stock is expected to report revenue as high as $410.68M and as low as $373.06M per share. Similarly, full-year sales forecasts have ranged between $1.55B and $1.66B. The mean revenue estimate is $1.63B.

Over the last 5 years, Red Rock Resorts, Inc. has averaged a -51.60% YoY EPS growth rate and a 4.30% revenue growth rate. Analysts are expecting EPS growth rates to be at -24.20% this quarter and EPS estimate for next year reflect 14.67% growth rate.

Sell-side analysts also have something to say about this company. Stifel analysts stated on 08/03/2017 that they maintained their Buy rating. Buckingham Research analysts stated on 27/01/2017 that they launched coverage on this stock with Buy rating. Imperial Capital analysts stated on 04/11/2016 that they launched coverage on this stock with In-line rating. Gabelli & Co analysts stated on 14/10/2016 that they launched coverage on this stock with Buy rating.

Is Now The Right Time To Bet On Red Rock Resorts, Inc. (RRR)? was last modified: June 14th, 2017 by Rosemary Becker
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