Caesars and Wynn Resorts are called casino sector standouts by Goldman Sachs

Goldman Sachs launched coverage of a number of gaming stocks on Monday.

Analyst Lizzy Dove said the backdrop for the gaming sector in 2025 remains choppy amid mixed data points for Las Vegas casinos, regional casinos, and Macau names. With the majority of Goldman’s gaming coverage investing heavily in new growth projects, the firm stayed selective, with a preference for stocks with medium-term, visible earnings power from these opportunities. “While we proceed with caution, we believe investors will be rewarded for a nuanced (and patient) approach, with the sector ripe for stock picking,” highlighted Dove.

Top ideas for the gaming sector included Caesars Entertainment and Wynn Resorts (NASDAQ:WYNN), which both landed Buy ratings from Goldman Sachs. Meanwhile, the firm tagged Las Vegas Sands (NYSE:LVS) with a Neutral rating and issued a Sell rating on MGM Resorts International (NYSE:MGM).

CZR: “With a solid 2026 setup in Las Vegas, competitive pressures in regionals starting to stabilize and significant FCF generation over the next 3 years, we see an attractive risk-reward with highly visible and modelable debt to equity value transfer over time, following the completion of the multi-year capex cycle.”

WYNN: “WYNN offers best in class assets, with favorable demographic exposure and solid 2027 tailwinds. With the upcoming 1Q27 launch of Wynn Al Marjan, we believe patient investors will be rewarded and view WYNN as the most catalyst-driven stock amongst our coverage, with meaningful upside from here.”

MGM: “With MGM’s significant lease burden and upcoming capex cycle for projects that are not opening in the near-to-medium term (Japan 2030+), we see unfavorable risk/reward against this macro, given the pressure on FCF generation, which we expect to weigh on capital returns and valuation.”

The four casino stocks are viewed similarly by Wall Street analysts and Seeking Alpha analysts. On a quantitative analysis basis, Wynn Resorts (NASDAQ:WYNN) has a slight edge.