Last Updated: 16 Sep 2024
Executive Summary
Monarch Casino & Resort Inc. (MCRI) is a leading operator of casinos and resorts in the United States. The company's stock has been underperforming the market in recent months, but there are several reasons to believe that it is undervalued.
Company Overview
Monarch Casino & Resort Inc. owns and operates the Atlantis Casino Resort Spa in Reno, Nevada. The company also has a minority interest in the Gold Strike Casino Resort in Jean, Nevada. Monarch Casino & Resort Inc. is a publicly traded company with a market capitalization of approximately $1.4 billion.
Fundamental Analysis
Monarch Casino & Resort Inc.'s financial performance has been solid in recent years. The company's revenue has grown by an average of 5% per year over the past five years. Net income has also grown steadily, increasing by an average of 10% per year over the same period.
Monarch Casino & Resort Inc. is currently trading at a trailing price-to-earnings (PE) ratio of 17.61. This is below the average PE ratio of 20 for the casino and resort industry. The company's forward PE ratio of 29.5 is also below the industry average.
Technical Analysis
Monarch Casino & Resort Inc.'s stock price has been trending lower in recent months. The stock is currently trading below its 50-day and 200-day moving averages. However, the stock is starting to show signs of a reversal. The relative strength index (RSI) is oversold, and the moving average convergence divergence (MACD) is starting to turn positive.
Short Term Outlook
Monarch Casino & Resort Inc.'s stock is likely to continue to trade sideways in the short term. However, the stock is starting to show signs of a reversal. If the stock can break above its 50-day moving average, it could rally to its 200-day moving average.
Long Term Outlook
Monarch Casino & Resort Inc.'s long-term outlook is positive. The company is well-positioned to benefit from the continued growth of the casino and resort industry. The company's strong financial performance and undervalued stock make it a good long-term investment.
Analyst Recommendations
The majority of analysts have a hold rating on Monarch Casino & Resort Inc. However, there are a few analysts who have a buy rating on the stock. The average analyst target price for the stock is $73.
Conclusion
Monarch Casino & Resort Inc. is a solid company with a long history of profitability. The company's stock is currently undervalued and has the potential to generate strong returns for investors.
