Last Updated: 12 Nov 2024
Executive Summary
MGM Resorts International (MGM) is a leading global hospitality and entertainment company with a market capitalization of $10.93 billion. The company's recent financial performance has been strong, with revenue and earnings growth in the latest quarter. MGM has a solid balance sheet and is expected to continue to benefit from the recovery in the travel and leisure industry. The stock is currently trading at a discount to its analyst target price, making it an attractive investment opportunity.
Company Overview
MGM Resorts International is an American global hospitality and entertainment company operating destination resorts globally. The company's properties include casinos, hotels, restaurants, nightlife venues, and entertainment attractions. MGM Resorts has operations in Las Vegas, Macau, China, and other major markets around the world.
Fundamental Analysis
MGM Resorts International's financial performance has been strong in recent quarters. In the latest quarter, the company reported revenue of $17.22 billion, up 5.3% year-over-year. Net income was $2.56 billion, up 32.6% year-over-year. MGM's strong financial performance is due to the recovery in the travel and leisure industry. The company's casinos and hotels are seeing increased demand as people return to travel and entertainment.
MGM Resorts International has a solid balance sheet. The company has $10.93 billion in cash and equivalents and $13.16 billion in debt. MGM's debt-to-equity ratio is 1.20, which is within a reasonable range. The company's strong balance sheet gives it the financial flexibility to invest in new growth opportunities.
MGM Resorts International is expected to continue to benefit from the recovery in the travel and leisure industry. The company's casinos and hotels are well-positioned to capture the increased demand for travel and entertainment. MGM's strong balance sheet and financial performance make it a solid investment opportunity.
Technical Analysis
MGM Resorts International's stock price has been trending higher in recent months. The stock is currently trading at $36.72, above its 50-day and 200-day moving averages. The stock's technical indicators are positive, suggesting that the stock is likely to continue to trend higher in the short term.
Short Term Outlook
MGM Resorts International's stock is expected to continue to trend higher in the short term. The stock is trading above its 50-day and 200-day moving averages, and the technical indicators are positive. The company's strong financial performance and the recovery in the travel and leisure industry are expected to continue to support the stock's price.
Long Term Outlook
MGM Resorts International's long-term outlook is positive. The company is a leader in the global hospitality and entertainment industry. The company's strong brand, loyal customer base, and global presence are expected to continue to drive growth in the long term.
Analyst Recommendations
Analysts are bullish on MGM Resorts International's stock. The consensus analyst target price is $50.57, which represents a 37.7% upside from the current price. Of the 23 analysts covering the stock, 4 have a strong buy rating, 15 have a buy rating, 4 have a hold rating, and 0 have a sell rating.
