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News  ›  The Motley Fool

Forget IGT Stock and Look at ACEL Instead

The Motley Fool Logo The Motley Fool By Todd Shriber
Forget IGT Stock and Look at ACEL Instead

Accel Entertainment (ACEL), a small-cap distributed gaming operator, is presented as an undervalued hidden gem alternative to traditional gaming stocks like Brightstar Lottery. Operating video gaming terminals in non-casino locations across 10 states, ACEL benefits from loyal older customers and strong fundamentals. The company has expansion potential through new market entries and a solid balance sheet, though it faces competition in its largest market, Illinois.

Insights
ACEL   positive

Presented as an undervalued hidden gem with strong fundamentals including a solid balance sheet, loyal customer base, expansion potential into new markets, successful acquisition track record (19% CAGR in new markets since 2022), and projected $1.36 per share in free cash flow for next year.