‘Sin Stocks’ Surge In Alcohol, Tobacco, And Casinos (LVS, PM, ROAG, And RICK)

‘Sin stocks’ are surging. Sin stocks – a subcategory of the consumer staples sector –are a group of equities whose primary business is focused on the guilty pleasures in life, i.e. alcohol, tobacco and gambling.

Analysts are watching the surge in this sector and are bullish on its growth.  Most likely to the rise in consumption of sin stock products in these uncertain times.  Over the past year, beer sales were up 42%. Wine sales 66% and liquor sales like tequila and gin led the charge up 75% compared to the same time last year. 

To start your research on this sector, here is how a few of the market leaders are doing:

-Las Vegas Sands Corp. (NYSE: LVS) has just received a new $48 price target from JP Morgan’s Joseph Greff. It had been $36 prior. The reasons: 1) Alleviated concerns over the passing of founder Sheldon Adelson, CEO; and 2) LVS has a position in Asian gambling mecca Macao (near Hong Kong). Authorities were active regarding this market. All is fine now.

Analysts now believe with confidence that the risk-reward for this stock  justifies a strong ‘buy’ rating. New management of this gambling company has earned the confidence of Wall Street. Insider tip: LVS has a strong and nearly-hidden revenue stream off the casino floor. It is heavily baked into trade shows.

-Philip Morris International (NYSE:PM) is attracting investors’ eyes with an upcoming earnings report. They see it showing a 5+% gain. Near-term stock price momentum is interpreted as a positive sign for this tobacco firm. Over the past month, shares have grown 6.74%. 

-Rogue One (OTCMKTS: ROAG) is a vertically integrated leader in the tequila space. It has been quiet to date, but analysts are now curious. We’ve done some research and found that in its newest SEC filing ROAG indicated with a ‘yes’ that major changes may be coming in their next filing.

These changes may refer to ROAG’s recently acquired Human Brands International (HBI) who is a revenue producing company that has experienced steady revenue growth since 2015.  This could indicate impressive numbers on ROAG’s next balance sheet. 

For investors, the best may be yet to come. In the $14.70 billion tequila industry, this is a ground-to-glass company. It is a grower, distiller and brand marketer. Human Brands International’s (HBI) primary focus is on the tequila industry.

HBI is a diversified holding company that dovetails with ROAG. ROAG plans to raise more capital through an S-1 Registration. Farther into the future, it plans to raise more capital through a warrant rights offering to fund more growth. Keep ROAG stock on your Watch List for these changes. The buzz in ROAG stock may be coming soon.

-RCI Hospitality Holdings (NASDAQ: RICK) successfully operates the  ‘Bombshells’ chain of sports bars/restaurants and gentlemen’s clubs. It reported Q1 2022 with a 61.6% jump in combined sales. Its nightclub sector led the way with an 86.6% YOY rise.

Investors are especially keen to the company opening its first ‘franchised’ Bombshells location in its March 2022 quarter. It expects to report full financial results by February 9. Wall Street investors are anxious to see them.  

Keep these stocks on your Watch List for future ‘Sin Stocks’ growth.