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Perhaps it is because trading stocks can often mirror the thrill of winning big at the blackjack tables, or maybe it is because Las Vegas conjures images of the world’s most flashy brands and businessmen. Regardless of the reason, it is clear that gambling stocks are always among the most popular on Wall Street.

Luckily for investors, now is also a great time to be buying gambling stocks, as continued domestic strength, a great recovery in Macau, and overall international interest in gaming have led to rising share prices. In fact, according to our Zacks Industry Rank data, the overall “Gaming” industry has gained more than 33.39% in the past year, outpacing the S&P 500’s respectable 24.62% gain.

With casino stocks this hot right now, investors are not going to want to miss out. Luckily, we can use Zacks’ proven stock-picking methods to find solid stocks in any industry. Check out these casino stocks today:

1.       Wynn Resorts (WYNN)

Led by the legendary Steve Wynn, this iconic gaming brand is looking strong after another solid earnings report. Wynn crushed estimates on the top and bottom line, expanded its operations in key markets, and posted EPS and revenue growth rates of over 100% and 45%, respectively. These great results have led to positive earnings estimate revisions, helping the stock earn a Zacks Rank #2 (Buy).

Thanks to these revisions, the Zacks Consensus Estimate for Wynn’s upcoming fiscal year has gained 26 cents over the past 60 days. Furthermore, the company is growing its cash flow by nearly 12% and generating a whopping $7.61 in cash per share right now. Wynn’s valuation metrics might cause some hesitation, but its P/E of 24.77 and P/S of 2.88 are not far off the industry averages and certainly within a reasonable range.

2.       Melco Crown Entertainment (MLCO)

Melco Crown receives the majority of its revenue from Macau, so the company has benefitted from the continued recovery in the region. Melco beat our consensus earnings estimate by eight cents in November, ushering in a strong share price surge and inspiring several positive estimate revisions. MLCO is currently sporting a Zacks Rank #2 (Buy).

Melco Crown is slated to release its Q4 report next month, and current estimates are calling for earnings growth of 77% and revenue growth of 11%. Looking ahead, the company is expected to improve its bottom line at an annualized rate of 12% over the next three to five years. Meanwhile, with a PEG ratio of 2.13, investors are getting a decent price for that growth. MLCO is also carrying a “B” grade for Momentum in our Style Scores system.

3.       Penn National Gaming (PENN)

Penn National Gaming is an operator of a number of casino and gambling properties in North America, specifically located in smaller markets and non-Vegas gambling hotspots. The stock is currently a Zacks Rank #1 (Strong Buy) and sports an “A” grade for Value in our Style Scores system. The company is generating cash flow of $4.66 per share, outpacing the industry’s $1.04 average, and its P/S ratio of 0.94 offers a significant discount to the industry average.

The current fiscal year is also expected to be one of aggressive earnings growth, although the company owes that to softer year-over-year comparisons. Nevertheless, Penn has proven its ability to consistently grow its revenue figures and maintain share price momentum. The stock is up over 140% within the past year and could surge higher with another great report in two weeks.

Want more analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!

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