Publication Date: May 29, 2026, 12:34h.
Last Updated: May 29, 2026, 12:37h.
- Red Rock’s stock is weighed down by a slight year-to-date deficit
- The stock experienced a notable surge last week, suggesting renewed investor interest
- Analyst recommends looking ahead to 2027
Despite a recent increase of 11.26% over the last week, Red Rock Resorts (NASDAQ: RRR) shares remain down for the year and are currently trading 12.61% below their peak from the past 52 weeks. However, one analyst believes that this decline is overstated.
Red Rock’s year-to-date decline of 2.63% occurs while the S&P MidCap 400 Index has gained 13%. Stifel analyst Steven Wieczynski reports that there are still robust trends in the Las Vegas locals (LVL) market—Red Rock’s main clientele—and advises investors to consider the year 2027 when evaluating this casino stock.
“We believe that current demand and spending trends in the LVL market are solid and encouraging, and the long-term growth factors supporting Southern Nevada’s economy and housing market are strong,” the analyst asserts. “As the focus shifts to 2027 and the majority of RRR’s construction disruptions are resolved, shares will appear significantly undervalued.”
This year, Red Rock has underperformed compared to the wider mid-cap market largely due to ongoing construction challenges at several of its venues, including the Durango Casino & Resort in Southwest Las Vegas.
Red Rock Stock Decline Presents a ‘Buying Opportunity’
Alongside the recent expansion at Durango, Red Rock is also renovating Green Valley Ranch (GVR) and Sunset Station. Although the company recognizes some temporary difficulties stemming from construction and maintenance at these sites, these challenges are expected to ease by year’s end.
Consequently, Wieczynski describes the stock’s pullback as “a buying opportunity,” noting that market players are currently more focused on immediate issues rather than the potential growth of Red Rock’s earnings in 2027 when these projects are fully completed.
The analyst, who has assigned a ‘buy’ rating to the stock, indicated that Red Rock is still witnessing strong demand patterns despite rising gas prices.
“We identify a compelling long-term case for owning RRR based on (1) ongoing strength in the LVL market due to favorable demographics, (2) potential market share gains from superior assets, (3) unused land holdings providing strategic advantages, and (4) an exceptional growth outlook compared to our peers in the gaming sector,” observes Wieczynski. “Our updated price target of $70 suggests about 20% upside potential.”
Examining Red Rock’s Real Estate Holdings
Red Rock owns what it describes as “six highly sought-after gaming-entitled development sites totaling approximately 441 acres” throughout the Las Vegas Valley, along with all its existing gaming facilities, thereby possessing a rich portfolio of real estate assets.
Wieczynski estimates the value of Red Rock’s untapped land in Sin City at around $2 million per acre, leading to a total estimated worth of $882 million.
“A noteworthy point is that RRR has the option to exclude gaming entitlements from any land sale, allowing the company to divest properties without increasing competition in the area,” adds the analyst. “This flexibility not only serves as a unique organic growth avenue for future developments, but also presents a potential cash flow option for funding investments or reducing debt.”