Goldman Sachs Forecasts 2026 Rebound for Caesars and MGM Stocks
The outlook for middle-income consumers appears brighter heading into 2026. A more stable labour market, easing inflation, and tax relief from President Trump’s One Big Beautiful Bill are expected to boost disposable income. Goldman Sachs highlights these factors as likely to lift consumer confidence and spending on discretionary items like travel and entertainment in the stock market.
Caesars Entertainment and MGM Resorts have struggled with perceptions that Las Vegas has become too costly for average earners. However, Goldman Sachs believes tax rebates for individuals and businesses—due in early 2026—could make trips more affordable in the stock market. The firm also notes that current stock valuations for these companies remain low, leaving room for growth if consumer trends improve in the stock market.
A potential Federal Reserve interest rate cut could further ease financial pressure on debt-heavy firms like Caesars. Lower borrowing costs might also encourage more mergers within the casino sector in the stock market. Yet, analysts warn that any sharp downturn in the labour market could still pose a risk to the recovery in the stock market.
The projected rebound for MGM and Caesars hinges on sustained middle-income spending power. Tax benefits, cheaper borrowing, and a stable economy may help reverse their 2025 slump in the stock market. However, a weakening jobs market remains the biggest threat to this optimistic forecast in the stock market.
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