This has been a rough market for equities recently, no question. So many stocks have been under pressure. Sometimes, the broad market dumps an industry because there’ simply nowhere to hide. But sometimes, it’s for reasons that are lurking under the surface that investors might not be aware of. Stocks which have the weakest earnings trends are at the bottom of our Zacks Rank. It doesn’t make them “bad stocks” it just means that their earnings are trending in the wrong direction, and investors should take note.

Today’s Bear of the Day is one such stock like this, It’s Golden Entertainment (GDEN). Golden Entertainment Golden Entertainment, Inc. owns and operates a diversified entertainment platform in the United States. The company operates through four segments; Nevada Casino Resorts, Nevada Locals Casinos, Nevada Taverns, and Distributed Gaming. It also operates casino, casino resorts, and taverns; and slot machines in third party non-casino locations. 

Unfortunately, the stock is currently a Zacks Rank #5 (Strong Sell). The reason being, three analysts have cut their earnings estimates for the current year and next year. The bearish moves have slashed our Zacks Consensus Estimates for the current year from 85 cents to 61 cents. Next year’s number is off from $1.05 to 88 cents over the last month. That means that the company is now forecast to see earnings contract by 64% this year. The good news is, next year there is a return to growth at 44%.

The Gaming industry is in the Top 35% of our Zacks Industry Rank. There are several names within the industry that are actually in the good graces of our Zacks Rank. These include Zacks Rank #1 (Strong Buy) Flutter Entertainment (FLUT) and Zacks Rank #2 (Buy) Accel Entertainment (ACEL).

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Golden Entertainment, Inc. (GDEN) : Free Stock Analysis Report

Accel Entertainment, Inc. (ACEL) : Free Stock Analysis Report

Flutter Entertainment PLC (FLUT) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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