Pro Analysis

Here are 3 top gaming entertainment stock ideas from JPMorgan

Source: Boyd Gaming Corporation

JPMorgan shared with its clients the firm's best U.S. gaming stock ideas.

The average gaming stock the research group follows is up nearly 60 percent this year compared with the S&P 500's 15 percent gain.

"We continue to see attractive upside in U.S. gaming stocks, relative to other areas of our coverage universe," analyst Joseph Greff wrote in a note to clients Wednesday.

"We believe the current backdrop of healthy free cash flow (and reasonable yields), high short interest, and an active M&A environment, combined with a stable macro outlook for the U.S. consumer (low unemployment, stable housing, low gas prices), supports our favorable outlook for U.S. centric gaming operators, despite their YTD outperformance."

Greff said on average U.S. gaming companies reported third-quarter earnings before interest, tax, depreciation and amortization that were 3 percent above Wall Street expectations.

Here are three overweight-rated companies that JPMorgan recommended with 2018 year-end price targets.