Last Updated: 19 Sep 2024
Executive Summary
Light & Wonder Inc. (LNW) is a leading technology provider for the gaming, lottery, social gaming, and digital industries. The company's strong financial performance, including high revenue growth and profitability, has driven its stock price to $112.68. Analysts are bullish on LNW's long-term prospects, with a consensus rating of "Buy" and an average target price of $112.78.
Company Overview
Light & Wonder Inc. develops and provides technology-based products and services for various gaming and entertainment sectors. The company's offerings include gaming machines, lottery systems, social gaming platforms, and digital content. LNW operates in the United States and internationally.
Fundamental Analysis
Revenue: LNW's revenue for the trailing twelve months (TTM) was $3.08 billion, representing an 11.9% year-over-year growth.
Earnings: The company's diluted EPS for TTM was $3.31, an increase of 2.8% from the previous year.
Profitability: LNW's gross profit margin was 57.7%, while its operating margin was 25.6%.
Valuation: The company's trailing price-to-earnings (PE) ratio is 34.04, which is above the industry average. However, its forward PE ratio is 21.69, indicating potential for future growth.
Technical Analysis
Trend: LNW's stock price is currently in an uptrend, trading above its 50-day and 200-day moving averages.
Support and Resistance: The stock has strong support at the $105 level and resistance at the $115 level.
Momentum: The relative strength index (RSI) is currently at 58, indicating that the stock is slightly overbought.
Short Term Outlook
In the short term, LNW's stock price is expected to remain within the range of $105 to $115. The company's strong financial performance and positive analyst sentiment are likely to support the stock price. However, profit-taking and market volatility could lead to temporary pullbacks.
Long Term Outlook
Analysts are bullish on LNW's long-term prospects. The company's focus on innovation and its strong position in the gaming and entertainment industries are expected to drive continued growth. The company's expansion into new markets and its ability to adapt to changing consumer preferences are also seen as positive factors.
Analyst Recommendations
The consensus analyst recommendation for LNW is "Buy." Out of 14 analysts, 2 have a "Strong Buy" rating, 7 have a "Buy" rating, 4 have a "Hold" rating, and 1 has a "Sell" rating. The average analyst target price is $112.78.
