4-Star Stocks Poised to Pop: International Game
By
Brian D. Pacampara
June 29, 2009
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Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, International Game Technology (NYSE: IGT), which makes slot machines and casino management systems, has earned a respected four-star ranking.
With that in mind, let's take a closer look at International Game's business and see what CAPS investors are saying about the stock right now.
International Game facts
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Headquarters (founded)
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Reno, Nev. (1980)
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Market Cap
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$4.89 billion
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Industry
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Casinos and Gaming
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Trailing-12-Month Revenue
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$2.39 billion
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Management
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CEO Patti Hart (since April 2009)
CFO Patrick Cavanaugh (since January 2009)
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Return on Equity (average, last three years)
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24.3%
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Dividend Yield
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1.5%
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Competitors
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WMS Industries (NYSE: WMS)
Shuffle Master (Nasdaq: SHFL)
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CAPS Members Bullish on IGT Also Bullish on
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Apple (Nasdaq: AAPL)
General Electric (NYSE: GE)
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CAPS Members Bearish on IGT Also Bearish on
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MGM Mirage (NYSE: MGM)
Capital One Financial (NYSE: COF)
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Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS.
Over on CAPS, fully 627 of the 675 members who have rated International Game -- some 93% -- believe the stock will outperform the S&P 500 going forward. These bulls include All-Star Myshkin69, who is ranked in the top 20% of our community, and KyrieLoon.
Early this month, Myshkin69 summed up the bull case in one simple sentence: "Automated casino games will thrive as gaming locations continue to expand in the US and worldwide."
In a pitch from two days later, Myshkin69 expands on why the stock is all set to hit jackpot:
This is the company that will supply the next generation of slot machines. The gaming industry was poised to migrate to a central-server machine architecture last summer, but the market meltdown prevented the capital expenditure. As the gamblers begin to come back to the casinos, the first casino with the next generation of slot machine will gain market share dominance -- and reduce slot costs at the same time. [International Game] has the handle on the slot market.
What do you think about International Game, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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