8 of 9
BACKNEXT
WMS Industries
(WMS) P/E: 19.7, EPS Growth: 25%

Are you a player? Take a chance with gambling machine supplier WMS Industries and you could end up hitting the jackpot.

"We view them as the Apple of slot machine companies -- they are always the most innovative, and they carry the must-have games that casino operators all want," said Joel Simkins, an analyst at Macquarie Securities, which covers 21 gaming and leisure stocks. WMS is his top pick because of its potential for future growth.

Despite its low level of debt and strong balance sheet, the stock is down more than 20% since its October peak due to concerns about sluggish demand from casinos. But with expected earnings growth of 20% this year and as more states legalize gambling and add slot machines, this could be your chance to get hitched to a rising star.

Maryland, Kansas, Ohio and Illinois have all approved the expansion of casinos and slot machines in the past few years and Simkins said he wouldn't be surprised if at least 80,000 new games are added across the U.S. over the year. More locations and more games to choose from will help to significantly boost the company's business.

The company will receive an additional surge in revenue as existing casinos begin to order replacements for their (older) machines at the end of the year, said Simkins.

WMS also hopes to jump start its international sales by entering the rapidly growing gaming market in Australia in the third quarter of this year.

--Blake Ellis

NEXT: Dress Barn

Last updated February 13 2010: 11:57 AM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More

Special Offer

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.