Will Market Forces Continue To Weigh On Scientific Games Stock?

SGMS: Scientific Games logo
SGMS
Scientific Games

Scientific Games (NASDAQ: SGMS) provides technology-based products and services for the iGaming, lottery, and social gaming industries. The company observed strong top line expansion largely from a series of acquisitions. Per a recent strategic plan, the company is slated to raise $7 billion and de-lever its balance sheet by selling a part of the Lottery and Sports Betting businesses. High interest expenses have been weighing on SGMS’s profitability in recent years. In-line with broader market forces SGMS stock has been on a decline over the past week. But, as per the Trefis machine learning engine which analyzes historical stock price movements, SGMS stock has a 56% chance of a rise over the next month (21 trading days). See our analysis Scientific Games Stock Chance of Rise for more details. (related: Penn National Gaming Stock: Should You Buy The Dip?)

Five Days: SGMS -5.2%, vs. S&P 500 -1.3%; Under performed market (22% event probability)

  • SGMS stock lost 5.2% over a five-day trading period ending 03/04/2022, compared to the broader market (S&P500) which declined 1.3% over the same period.
  • Returns of -5.2% or lower over a five-day period on 550 occasions out of 2516 (22%); Stock rose in the next five days in 259 of these 550 instances (47%).
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Ten Days: SGMS -7.2%, vs. S&P 500 -1.1%; Under performed market (23% event probability)

  • SGMS stock declined 7.2% over the last ten trading days (two weeks), compared to the broader market (S&P500) which lost 1.1%.
  • Returns of -7.2% or lower over 10-day period on 586 occasions out of 2516 (23%); Stock rose in the next 10 days in 310 of these 586 instances (53%).

Twenty-One Days: SGMS 2%, vs. S&P 500 -5.5%; Outperformed market (50% event probability)

  • SGMS stock gained 2% over the last twenty-one trading days (about one month), compared to the broader market (S&P500) which lost 5.5%.
  • Returns of 2% or higher over 21-day period on 1249 occasions out of 2515 (50%); Stock rose in the next 21 days in 705 of these 1249 instances (56%).

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 Returns Mar 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 SGMS Return -6% -11% 324%
 S&P 500 Return -1% -9% 93%
 Trefis MS Portfolio Return -2% -12% 245%

[1] Month-to-date and year-to-date as of 3/7/2022
[2] Cumulative total returns since the end of 2016

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