S&P 500   5,078.18
DOW   38,972.41
QQQ   437.60
3 lithium stocks to ride a multi-year cycle
Is Gold Really Boring? (Ad)
Goldman upgraded Nvidia stock, one metric says it could go higher
Autozone stock price is still in the rally zone
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Closing prices for crude oil, gold and other commodities
New highs are coming for Lowe’s stock despite mixed results
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Consumer confidence slips in February as anxiety over potential recession surprisingly reappears
Thinking long-term? Don't lose interest in Pinterest
S&P 500   5,078.18
DOW   38,972.41
QQQ   437.60
3 lithium stocks to ride a multi-year cycle
Is Gold Really Boring? (Ad)
Goldman upgraded Nvidia stock, one metric says it could go higher
Autozone stock price is still in the rally zone
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Closing prices for crude oil, gold and other commodities
New highs are coming for Lowe’s stock despite mixed results
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Consumer confidence slips in February as anxiety over potential recession surprisingly reappears
Thinking long-term? Don't lose interest in Pinterest
S&P 500   5,078.18
DOW   38,972.41
QQQ   437.60
3 lithium stocks to ride a multi-year cycle
Is Gold Really Boring? (Ad)
Goldman upgraded Nvidia stock, one metric says it could go higher
Autozone stock price is still in the rally zone
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Closing prices for crude oil, gold and other commodities
New highs are coming for Lowe’s stock despite mixed results
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Consumer confidence slips in February as anxiety over potential recession surprisingly reappears
Thinking long-term? Don't lose interest in Pinterest
S&P 500   5,078.18
DOW   38,972.41
QQQ   437.60
3 lithium stocks to ride a multi-year cycle
Is Gold Really Boring? (Ad)
Goldman upgraded Nvidia stock, one metric says it could go higher
Autozone stock price is still in the rally zone
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Closing prices for crude oil, gold and other commodities
New highs are coming for Lowe’s stock despite mixed results
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
Consumer confidence slips in February as anxiety over potential recession surprisingly reappears
Thinking long-term? Don't lose interest in Pinterest

Light & Wonder is Riding the Gaming Rebound

 Light & Wonder stock price outlookGlobal gaming company Light & Wonder Inc. NYSE: LNW was formerly Scientific Games. It's a worldwide leader in gaming machines and products for licensed casinos, lotteries and gaming markets based in Las Vegas, Nevada. Its products include casino slot machines, tabletop games, lottery systems, sports betting solutions and digital gaming solutions.

Key Points

  • Light & Wonder is a global gaming company providing gaming and supplies to licensed casinos and gaming markets in over 100 countries.
  • Gaming machine sales grew 55% YoY.
  • Its SciPlay social gaming and iGaming online casinos generated record revenues in Q1 2023.
  • So far, there are six states where iGaming is legalized in the U.S., with Michigan as the most recent. The Company plans on expansion as more states approve iGaming.
  • LNW shares trade at 50.5X forward earnings and have a 4.36% short interest.
  • 5 stocks we like better than Light & Wonder

Clients utilize its products and services in over 100 countries. Light & Wonder has grown through acquisition. They completed 100% of the acquisition of SciPlay Co. NASDAQ: SCPL, which they initiated in December 2021, a leading provider of social media gaming with over $180 million in sales.

It acquired SG Digital 2022, a sports betting, gaming and online gaming provider. These acquisitions expand Light & Wonder’s footprint in digital gaming. It competes with International Gaming Technology PLC (NYSE IGT), a mega slots and gaming machines supplier to licensed casinos.

The Many Parts of the Whole

Light & Wonder had expanded its footprint into social gaming, mobile gaming and online gaming casinos with its completion of SciPlay. SciPlay has a 40% YoY revenue growth rate, contributing 27% of the revenues or $671 million in 2022. SciPlay generated $22 million in 2012 and has grown 2X faster than the social casino market.

iGaming

iGaming generated $240 million and 9% of total revenues. SciPlay targets 1 to 2 new game launches annually and a direct-to-consumer platform launch in 2023. iGaming Live-Casino is launching in Michigan due to the passage of its iGaming legislation for DraftKings Inc. NASDAQ: DKNG and Golden Nugget Online. Each new region that legalizes sports betting and iGaming is a win for the Company.


Casino Gaming

Its main gaming business of video slot machines, tabletop games and gaming supplies brought in the lion’s share of revenues at 64% or $1.6 billion in full-year 2023. The Company has over 4,800 live games with over 4.5 billion monthly game spins. It has over 300 operator brands, including Draft Kings, MGM Resorts International NYSE: MGM, BetMGM,  Caesar’s Entertainment Inc. NASDAQ: CZR and Golden Nugget.

Growth Metrics Improving

On May 9, 2023, Light & Wonder reported its fiscal Q1 2023 earnings for the quarter ended in March 2023. The Company reported an earnings-per-share (EPS) profit of 23 cents missing consensus analyst estimates by $0.03. Revenues grew 17.1% year-over-year (YoY) to $670 million, beating analyst expectations of $632.14 million. The Board of Directors approved a secondary Australian Securities Exchange (ASX) listing.

Revenues by Business Segment

Gaming revenues rose 18% to $419 million, driven by robust Gaming machine sales, operations and systems. Gaming machine sales rose 53% YoY, shipping 7,600 units globally, 4,000 in the U.S. and 3,600 internationally. SciPlay hit record revenues of $186 million, up 18% YoY.

Strength was driven by its core social casino business, gaining market share and delivering strong player metrics. iGaming revenue hit another quarterly record of $65 million, up 10% YoY. Robust growth in the U.S. is driving sales.

Light & Wonder CEO Matt Wilson commented, “This new approach is already producing results. Eight key game themes will be fully launched tri-channel throughout the year.

Five digital native games will debut in the land-based market, and 38 land-based titles will go into the digital ecosystem this year. These significant milestones further validate that proven games are in demand and players want to play their favorite games across multiple platforms.”

Light and Wonder analyst ratings and price targets are at MarketBeat.

 

Light and Wonder stock chart

 

Weekly Cup and Handle Breakout Attempt

The weekly candlestick chart on LNW illustrates a cup and handle breakout attempt. The cup lip line started at $69.80 in November 2022. LNW shares sank to a low of $40.10 by September 2022. It formed a sharp, rounded bottom and staged a rally back up to retest the lip line by June 2023. Shares pulled back to $53.77 in March 2023.

LNW formed a weekly market structure low (MSL) breakout through the $60.16 trigger to the lip line forming the handle. Shares are still testing the lip line after overshooting it in July 2023. The weekly relative strength index (RSI) coiled back up to the 60-band, where it's stalling.

Pullback support levels are at $62.16, $60.16 weekly MSL trigger, $57.64 and $53.77 handle low.

→ Critical asset just had biggest fall on record (From Stansberry Research) (Ad)

Should you invest $1,000 in Light & Wonder right now?

Before you consider Light & Wonder, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Light & Wonder wasn't on the list.

While Light & Wonder currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Elon Musk's Next Move Cover

Wondering when you'll finally be able to invest in SpaceX, StarLink, or The Boring Company? Click the link below to learn when Elon Musk will let these companies finally IPO.

Get This Free Report

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Light & Wonder (LNW)
0 of 5 stars
A$0.00flatN/AN/AN/A
Light & Wonder (LNW)
2.3473 of 5 stars
$96.60+1.6%N/A71.56Moderate Buy$83.82
DraftKings (DKNG)
3.3973 of 5 stars
$41.48+2.8%N/A-23.70Moderate Buy$43.00
MGM Resorts International (MGM)
4.9819 of 5 stars
$42.00+0.6%N/A13.25Moderate Buy$54.57
MGM Resorts International (MGM)
0 of 5 stars
C$0.00flatN/AN/AN/A
Scientific Games (SGMS)
0 of 5 stars
$0.00-100.0%N/A15.57N/A
SciPlay (SCPL)
0 of 5 stars
$22.94flatN/A22.71Hold$20.14
Caesars Entertainment (CZR)
4.7515 of 5 stars
$41.96+2.8%N/A11.56Moderate Buy$58.73
Compare These Stocks  Add These Stocks to My Watchlist 

Jea Yu

About Jea Yu

  • JeaYu21@gmail.com

Contributing Author

Trading Strategies

Experience

Jea Yu has been a contributing writer for MarketBeat since 2018.

Areas of Expertise

Equities, options, ETFs and futures; fundamental, qualitative, quantitative and technical analysis and pattern identification; active and swing trading; trading systems and methodology development

Education

Bachelor of Arts, University of Maryland, College Park

Past Experience

U.S. equity markets trader, writer and analyst for over 25 years. Published four books by publishers McGraw-Hill, John Wiley & Sons, Marketplace Books and Bloomberg Press. Speaker at various expos and seminars and has been quoted and featured in USA Today, The Wall Street Journal, Traders Magazine, The Financial Times and various trade publications, including Stocks & Commodities, Active Trader and Online Investor.


Featured Articles and Offers

DraftKings' 5% Dip: Market Warning or Buy Signal?

DraftKings' 5% Dip: Market Warning or Buy Signal?

The factors leading to the decline, explore the company's nearly 50% YOY revenue growth, and analyze the broader market trends affecting DraftKings.

Search Headlines: