News Of Vaccine Driving Casino Stocks Up
Investors have seemingly out of the blue resumed betting with confidence on casino stocks. And financial and stock exchange experts are convinced it has everything to do with Pfizer and BioNTech’s announcement regarding the 90% effectiveness of a newly developed concept vaccine candidate.
Especially notable is the size of the rise in percentile value witnessed by stocks belonging to industry giants like Wynn Resorts (NASDAQ:WYNN – up 25%), MGM Resorts (NYSE:MGM – up 14%), and Caesars Entertainment (NASDAQ:CZR – up 11%).
Interesting to note about Wynn’s shares is the enormous jump when compared to those of MGM Resorts and Caesars Entertainment. Wynn, whose shares have traded far below par since the beginning of 2020, is the only operator of the three not heavily invested in the online casino industry. MGM and Caesars have both been actively pursuing digital gaming and sports betting for quite some time.
Good News For Leisure And Travel
The news regarding a likely vaccine is indeed positive news for the entire leisure and entertainment sector – not to mention even those sectors invested in travel, accommodation, and related industries.
The word remains out on whether White House medical advisor Dr. Anthony Fauci’s previous statement regarding the percentage of efficiency he would deem acceptable, or realistic, will eventually return to haunt Pfizer and BioNTech. According to the communicable disease expert, he would find a vaccine with efficacy rates as low as 50% or 60% to be acceptable.
On the other hand, though a standard influenza vaccine is known to lower the risk of flu by between 40% and 60%, the vaccine for measles carries a 93% efficacy rate. This is according to data released by the Centers for Disease Control and Prevention (CDC).
Wynn May Be A Value Pick - But
Though Wynn remains heavily reliant on its physical properties in Macau and Las Vegas, and as a result, finds itself in a position of disadvantage when compared to its contemporaries, the ironic flip side of the coin is that the global health crisis affects physical casinos by a landslide compared to online offerings.
It’s likely for this reason Wynn is currently considered a more valuable pick by investors than either MGM Resorts or Caesars Entertainment. Even so, Wynn still hasn’t made it onto the Top 10 list of investments giants David and Tom Gardner, better known as Motley Fool Stock Advisor.
All in all, however, the likelihood of an effective vaccine being in the offing certainly has its bit for the start of a recovery for the casino industry.