Gaming and Leisure Properties (GLPI): Assessing Valuation After Recent Share Price Weakness

Gaming and Leisure Properties (GLPI) has been sliding recently, with the stock down about 7% over the past month and roughly 14% in the past 3 months, despite solid underlying profitability.

See our latest analysis for Gaming and Leisure Properties.

Zooming out, the recent pullback adds to a softer year to date, with the share price down double digits while the five year total shareholder return remains solidly positive. This suggests long term confidence but fading near term momentum as investors reassess REIT risks around rates and growth.

If GLPI’s recent volatility has you rethinking your income and defensiveness mix, it might be a good time to scan healthcare stocks as another pocket of resilient cash flow opportunities.

With earnings still growing, a near 30 percent discount to analyst targets and a richer than average yield, is GLPI now an overlooked value play for patient income investors, or is the market already bracing for slower growth ahead?

Most Popular Narrative Narrative: 22.5% Undervalued

With the most followed valuation placing fair value well above the last close of $41.89, the narrative frames GLPI as meaningfully mispriced on future earnings power.

The ongoing development and deployment of significant investment capital into marquee projects such as the Chicago Bally's, The Belle conversion, and continued land-based upgrades should meaningfully boost long-term rental revenue streams and underlying tenant health, ultimately driving steady funds from operations and net income growth. Expanding into tribal gaming real estate, where the company is in advanced discussions with multiple tribal operators, could provide Gaming and Leisure Properties with access to an underserved and growing market, diversifying the tenant base and supporting sustained rental and revenue growth.

Read the complete narrative.

Curious how steady rent escalators, rising margins and a richer future earnings multiple all combine into that upside case? The full narrative unpacks every assumption driving that fair value call.

Result: Fair Value of $54.07 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that upside assumes Bally's credit holds up and digital gaming does not erode long term demand for GLPI’s brick and mortar assets.

Find out about the key risks to this Gaming and Leisure Properties narrative.

Build Your Own Gaming and Leisure Properties Narrative

If the current story does not quite fit your view, dig into the numbers yourself and build a personalised thesis in minutes, Do it your way.

A great starting point for your Gaming and Leisure Properties research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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