Is Red Rock Resorts (RRR) a Compelling Bet?

1 hour ago 6

Soumya Eswaran

Mon, June 15, 2026 astatine 7:53 AM CDT 3 min read

Baron Capital, an concern absorption company, released its Q4 2025 missive for its "Baron Real Estate Fund". A transcript of the missive is disposable to download here. Baron Real Estate Fund was recognized arsenic the Best Real Estate Fund Over Three Years astatine the 2026 LSEG Lipper Funds Awards, reflecting the three-year show ending December 31, 2025. The Fund declined 5.39% (Institutional Shares) successful Q1, underperforming the MSCI USA IMI Extended Real Estate Index (−0.96%) and the MSCI US REIT Index (+4.52%). Despite the Q1 decline, the semipermanent show remains strong. The missive covers existent thoughts, portfolio composition, cardinal themes, apical contributors and detractors, caller activity, and outlook for existent property and the Fund. The Fund has a affirmative outlook connected the broader equity marketplace and nationalist existent estate, and maintains a constructive outlook with compelling reasons to enactment the course. Please reappraisal the Fund's apical 5 holdings to summation insights into their cardinal selections for 2026.

In its first-quarter 2026 capitalist letter, Baron Real Estate Fund highlighted stocks similar Red Rock Resorts, Inc. (NASDAQ:RRR). Headquartered successful Las Vegas, Nevada, Red Rock Resorts, Inc. (NASDAQ:RRR) develops and operates casino and amusement properties. On June 12, 2026, Red Rock Resorts, Inc. (NASDAQ:RRR) closed astatine $62.85 per share. One-month instrumentality of Red Rock Resorts, Inc. (NASDAQ:RRR) was 20.59%, and its shares gained 25.88% implicit the past 52 weeks. Red Rock Resorts, Inc. (NASDAQ:RRR) has a marketplace capitalization of $6.59 billion.

Baron Real Estate Fund stated the pursuing regarding Red Rock Resorts, Inc. (NASDAQ:RRR) successful its Q1 2026 capitalist letter:

"We judge respective travel-related existent property companies are good positioned to payment from a favorable "trifecta" of cyclical, secular, and 2026-specific tailwinds, which should enactment beardown fundamentals and stock terms show successful the years ahead.

Red Rock Resorts, Inc. (NASDAQ:RRR) is 1 of the respective travel-related companies that are attractively valued. It is simply a starring gaming maturation institution positioned successful the highly charismatic Las Vegas Locals market. Red Rock Resorts has the existent property capableness to perchance treble its portfolio successful the coming years, and we find its existent valuation – nether 10 times 2027 estimated currency travel – highly compelling."

Red Rock Resorts, Inc. (NASDAQ:RRR) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 30 hedge money portfolios held Red Rock Resorts, Inc. (NASDAQ:RRR) astatine the extremity of the archetypal quarter, compared to 35 successful the erstwhile quarter. While we admit the imaginable of Red Rock Resorts, Inc. (NASDAQ:RRR) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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