Red Rock Resorts (RRR) is Benefiting from Fundamental Strength

Diamond Hill Capital, an investment management company, released its “Select Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their YTD rally in the third quarter, with the Russell 3000 Index surging 8%. At the same time, the portfolio underperformed the Russell 3000 Index, returning 4.98%. To get an idea of the fund’s best choices for 2025, check out its top 5 positions.

In its third-quarter 2025 investor letter, Diamond Hill Select Fund highlighted stocks such as Red Rock Resorts, Inc. (NASDAQ:RRR). Headquartered in Las Vegas, Nevada, Red Rock Resorts, Inc. (NASDAQ:RRR) develops and operates casino and entertainment properties. One-month return of Red Rock Resorts, Inc. (NASDAQ:RRR) was -14.89%, and its shares gained 1.61% of their value over the last 52 weeks. On October 29, 2025, Red Rock Resorts, Inc. (NASDAQ:RRR) stock closed at $52.29 per share, with a market capitalization of $5.357 billion.

Diamond Hill Select Fund stated the following regarding Red Rock Resorts, Inc. (NASDAQ:RRR) in its third quarter 2025 investor letter:

"Other top contributors in the quarter included Cimpress, Red Rock Resorts, Inc. (NASDAQ:RRR) and Coherent. Red Rock Resorts, a casino operator controlling over half the Las Vegas locals market, continues to benefit from broad fundamental strength which is underpinning steady and stable growth."

Red Rock Resorts, Inc. (NASDAQ:RRR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 32 hedge fund portfolios held Red Rock Resorts, Inc. (NASDAQ:RRR) at the end of the second quarter, up from 26 in the previous quarter. While we acknowledge the potential of Red Rock Resorts, Inc. (NASDAQ:RRR) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Red Rock Resorts, Inc. (NASDAQ:RRR) and shared Baron Growth Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.