For several years now, our experts here at the Switzer Report have been picking Aristocrat Leisure (ALL) as one of their “hot” stocks.

From December 2016 (https://switzersuperreport.com.au/professionals-pick-aristocrat-leisure-all/), it has been a favourite of our regular contributors.

In February 2018, James Dunn picked ALL as one of his top 5 offshore earners when our dollar dropped. Its pre-Covid price at the time was $25.09. Today it trades around $33.80.

In August the same year, Charlie Aitken (who’s taking a seasonal break) said he invests in stocks that sell their product or service to the world, not just to 24 million people. “I believe all of you need more global exposure in your portfolio and one of my key high conviction ASX-listed global earning ideas remains Aristocrat Leisure (ALL). Aristocrat passed the earnings and outlook test and has all the characteristics we seek in a high conviction investment.” https://switzersuperreport.com.au/aristocrat-leisure-a-40-plus-stock/

In December 2018, Michael Wayne, Managing Director of Medallion Financial Group, joined in with his view: “With a broad suite of products and strong intellectual property in a market with high barriers to entry, we believe an opportunity arises for investors to top up on ALL or take a position in a company with bright prospects.” https://switzersuperreport.com.au/professionals-pick-aristocrat-leisure-all-asx/

In January the next year, in an article titled Why I’m buying Aristocrat Leisure Charlie wrote: “I realise some people have ethical issues with owning gaming stocks or those who manufacture gaming software. I do have sympathy for those views as the social cost of problem gambling is enormous. However, the company operates in a highly regulated market and my job as a fund manager is to invest in the best-of-breed companies in structurally growing industries. ALL fits that description.” https://switzersuperreport.com.au/why-im-buying-aristocrat-leisure/

Julia Lee is also a fan of Aristocrat and has nominated it today as her “HOT” stock. “Traditionally Aristocrat Leisure made and sold pokie machines,” she said.

“This side of the business is still significant and will continue to be under pressure in the short term from the rising Covid 19 cases in the US.

“Things should return to normal as casinos in the US return to normal by FY22.

“Digital gaming grew revenue by 50% in the first half of 2020. This growth should moderate to around 10% for the current financial year, however we expect this area to offer long-term growth.

“The digital business should be around 20% earnings this financial year.

“This is a company with a strong balance sheet, great cash generation and strong medium-term growth,” Julia said.

Source: Google