Red Rock Resorts

Red Rock Resorts saw its stock rise 22.4% in Q2 as construction disruptions eased and investors anticipated benefits from recent resort investments. Baron Focused Growth Fund said the improvements should boost earnings and cash flow, enabling further property investment and shareholder returns. The fund also noted Red Rock's strong balance sheet and increased liquidity as supportive for continued capital allocation. » More on finance.yahoo.com

Red Rock Resorts reported Q2 2026 earnings of $0.67 per share (forecast $0.50) and revenue of $510.3 million (expectation $500.63 million). Operating free cash flow amounted to $100 million, but adjusted EBITDA margin fell year-on-year, weighed down by construction activity and higher operating costs. Management called the result the second-best second quarter in the company’s history and confirmed a capex plan of $375–425 million for 2026; the quarterly dividend remains at $0.26. The stock closed at $64.27 (‑2.04%) and showed only a muted reaction to the release. » More on de.investing.com

Baron Real Estate Fund highlighted Red Rock Resorts as a top holding, citing cyclical, secular and 2026-specific tailwinds and attractive valuation under 10x 2027 estimated cash flow. The fund notes Red Rock's growth position in the Las Vegas locals market and potential to double its real estate portfolio. Shares have recently outperformed, but hedge fund ownership fell slightly to 30 portfolios at quarter-end. » More on finance.yahoo.com