US gaming stocks are investors’ flavor of month for 2017

Investors are cherry-picking gaming stocks over the red-hot technology index this year on the back of Macau’s resurgence and couple of good news in the U.S. gambling market.

Las Vegas Review Journal reported that the U.S. Gaming Index is outperforming the Dow’s technology index for the first time in years. The U.S. gaming stocks index is up 22.2 percent from January up to June 2, 2017, beating tech stocks’ 21.5 percent gain.

“There has been increasing interest in gaming versus other sectors in large part because of fundamentals,” Telsey Advisory Group analyst David Katz said, according to the news report. “Companies are generating free cash and have improving balance sheets. We see little in the way of specific risks or negative catalysts.”

The buying spree of casino stocks, according to analysts, is triggered by the gambling companies’ solid revenue growth not only in the U.S. but also in Macau.