The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how consumer discretionary - casino operator stocks fared in Q1, starting with Monarch (NASDAQ: MCRI).

The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Casino operators run gaming resorts and facilities that generate revenue from gambling, hospitality, food and beverage, and entertainment offerings. Tailwinds include pent-up travel demand, expansion into new jurisdictions legalizing gaming, and growing interest in integrated resort developments in Asia and the Middle East. However, the industry faces notable headwinds: heavy regulatory and licensing requirements limit operational flexibility, capital expenditure for property development and renovation is substantial, and revenue is highly sensitive to macroeconomic conditions and consumer confidence. Rising competition from online gambling platforms, regional saturation in mature markets, and geopolitical risks in key international jurisdictions add further uncertainty.

The 9 consumer discretionary - casino operator stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1.6%.

While some consumer discretionary - casino operator stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.2% since the latest earnings results.

Best Q1: Monarch (NASDAQ: MCRI)

Established in 1993, Monarch (NASDAQ: MCRI) operates luxury casinos and resorts, offering high-end gaming, dining, and hospitality experiences.

Monarch reported revenues of $136.6 million, up 8.9% year on year. This print exceeded analysts’ expectations by 5.2%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS and adjusted operating income estimates.

(1) Definitions, disclosures and reconciliations of non-GAAP financial information are included later in the release. CEO CommentJohn Farahi, Co-Chairman and Chief Executive Officer of Monarch, commented: “Monarch delivered record first quarter financial results. First quarter net revenue and adjusted EBITDA increased year-over-year by 8.9% and 19.0%, respectively. First quarter adjusted EBITDA margin increased by approximately 300 basis points from 32.8% in the first quarter of 2025 to a record first quarter margin of 35.8% in 2026. The first quarter increases in revenue and adjusted EBITDA highlight our ability to drive sustained growth from our two properties.

Monarch scored the biggest analyst estimates beat of the whole group. The stock is up 17.6% since reporting and currently trades at $115.90.

Is now the time to buy Monarch? Access our full analysis of the earnings results here, it’s free.

Flutter Entertainment (NYSE: FLUT)

With its digital fingerprints on nearly every aspect of global gambling, from the Super Bowl bettor to the online poker aficionado, Flutter Entertainment (NASDAQ: FLUT) operates a portfolio of leading online sports betting and gaming brands including FanDuel, PokerStars, Paddy Power, and Sky Betting & Gaming.

Flutter Entertainment reported revenues of $4.30 billion, up 17.4% year on year, outperforming analysts’ expectations by 4.9%. The business had a very strong quarter with an impressive beat of analysts’ adjusted operating income and revenue estimates.

Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 2.9% since reporting. It currently trades at $96.21.

Is now the time to buy Flutter Entertainment? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: MGM Resorts (NYSE: MGM)

Operating several properties on the Las Vegas Strip, MGM Resorts (NYSE: MGM) is a global hospitality and entertainment company known for its resorts and casinos.

MGM Resorts reported revenues of $4.45 billion, up 4.2% year on year, exceeding analysts’ expectations by 2%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

As expected, the stock is down 7.2% since the results and currently trades at $36.45.

Read our full analysis of MGM Resorts’s results here.

PENN Entertainment (NASDAQ: PENN)

Established in 1982, PENN Entertainment (NASDAQ: PENN) is a diversified American operator of casinos, sports betting, and entertainment venues.

PENN Entertainment reported revenues of $1.78 billion, up 6.4% year on year. This number topped analysts’ expectations by 1.7%. Taking a step back, it was a mixed quarter as it also recorded a beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.

The stock is up 7.4% since reporting and currently trades at $15.87.

Read our full, actionable report on PENN Entertainment here, it’s free.

Caesars Entertainment (NASDAQ: CZR)

Formerly Eldorado Resorts, Caesars Entertainment (NASDAQ: CZR) is a global gaming and hospitality company operating numerous casinos, hotels, and resort properties.

Caesars Entertainment reported revenues of $2.87 billion, up 2.7% year on year. This result beat analysts’ expectations by 0.6%. However, it was a slower quarter as it produced a significant miss of analysts’ EPS and EBITDA estimates.

The stock is flat since reporting and currently trades at $27.38.

Read our full, actionable report on Caesars Entertainment here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.