Assessing Red Rock Resorts (RRR) Valuation After Recent Share Price Momentum Cooldown

Red Rock Resorts (RRR) has drawn fresh attention after recent share moves, with the stock returning about 9% over the past month and 6.6% in the past 3 months, despite a negative year to date performance.

See our latest analysis for Red Rock Resorts.

That recent 9% 1 month share price return sits alongside a small year to date share price decline and a much stronger 45.16% 1 year total shareholder return. Together, these figures suggest momentum has cooled in the near term but remains solid over a longer stretch as investors reassess growth prospects and risk.

If Red Rock Resorts has caught your eye, this could be a good moment to broaden your watchlist and check out fast growing stocks with high insider ownership.

So with Red Rock Resorts trading at $61.27, an estimated intrinsic discount of about 24.5% and a value score of 5, is the market offering an entry point at this level or already pricing in future growth?

Most Popular Narrative: 6% Undervalued

With Red Rock Resorts last closing at $61.27 against a narrative fair value of about $65.20, the current price sits below that reference point and sets up a valuation story anchored in Las Vegas locals demand and project execution.

The company's large land bank and disciplined approach to new development projects in high-barrier-to-entry locations uniquely position Red Rock Resorts to capitalize on the growing preference for local, integrated resort experiences, providing a multi-year pipeline for revenue and EBITDA expansion.

Read the complete narrative.

Curious what kind of revenue path, profit margins and future earnings multiple are being woven together to reach that fair value? The narrative leans on steady top line expansion, fatter margins and a richer P/E several years out. Want to see exactly how those moving parts line up on the spreadsheet behind this view?

Result: Fair Value of $65.20 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there is still real execution risk here, particularly if large renovation projects drag on free cash flow or if a weaker Las Vegas local economy hits visitation.

Find out about the key risks to this Red Rock Resorts narrative.

Build Your Own Red Rock Resorts Narrative

If you look at the numbers and reach a different conclusion, or simply prefer to stress test the assumptions yourself, you can build a custom thesis in a few minutes and Do it your way.

A great starting point for your Red Rock Resorts research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Red Rock Resorts is on your radar, do not stop there. Broaden your search now so you do not miss other opportunities that could fit your style.

• Spot potential high growth names early by scanning these 3553 penny stocks with strong financials for companies with room to grow before the crowd pays attention.
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• Zero in on value driven ideas using these 885 undervalued stocks based on cash flows to find companies whose prices sit below their estimated cash flow potential.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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