The stock known as Red Rock Resorts or $RRR appears to be severely undervalued. Their P/E ratio is 33 which may seem high at first glance however this is a sub for the entertainment industry(P/E 38 is normal). While a company’s P/E cannot be the only statistic that is taken into consideration while considering a pick, it is a major variable. Another point of interest within $RRR is that large percentages of this company are held by recognizable ETFs from companies such as Vanguard or BlackRock, well-known financial institutions. Not only are they within ETFs made by these companies, but they are also within ETFs of major growth such as Baron Small Cap fund, Vanguard TSM fund, and iShares 2000. Vanguard and Baron also have $RRR in multiple of their ETFs, not just one. This suggests that programs such as “Aladdin” have deemed this as a valuable pick. They have also seen steady growth in revenue, pulling in 18% more revenue this quarter than last, and there has been a consistent rise for the past 8 quarters (except for 1 due to covid). They have also managed to keep their profit in the black(ironic lol) or at least close to it. In the past four months, $RRR has been recommended as either a hold, buy, or strong buy 37 times. It has never been recommended to sell in over four months. There has only been one intuition that has pulled out of this stock and that was Goldman Sachs. While this may change your view of $RRR, remember that BlackRock, Vanguard, and Wells Fargo have chosen to join into the pick or keep their original picks within this company. We have seen. A 16% raise in one week, a 1.5% rise in the past month, and a 114% rise in the past year(despite COVID). This has proven to be a successful stock pick with relatively low volatility and steady growth.
Submitted December 13, 2021 at 06:56AM by Bobtheglob71 https://ift.tt/3DRot1B
