Casino Stocks: No Reason T0 Fold

Place your bets: Do any jackpots remain among gaming stocks? After all, the group has been dishing out winnings for two years, and some market watchers think it's too late to get in. Several gaming stocks carry weighty multiples, and many analysts worry about an oversupply of venues. Six states now have or will soon allow riverboat or dockside casinos. Some 150 Native American tribes in more than 20 states have signed or are negotiating casino gaming compacts. And in Las Vegas, Circus Circus Enterprises, Mirage Resorts, and MGM-Grand will soon launch grandiose new theme-park casinos.

Yet odds are the public's insatiable appetite for gambling can elevate some stocks. Nowadays, parents can take the kids along on a gambling vacation. That's a key reason some analysts believe Luxor and Grand Slam Canyon, the two new Circus Circus properties, should help propel the company's shares, which have lagged recently. In Vegas, many also favor Caesars World, a leader among high rollers yet one of the cheapest gaming stocks around. Its recent price-earnings ratio was 14. Caesars has scored with Forum Shops, a huge mall situated next to the casino.