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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.