Last Updated: 19 Sep 2024
Executive Summary
MGM Resorts International (MGM) is a leading global hospitality and entertainment company with a market capitalization of $11.3 billion. The company has a strong financial position with an EBITDA of $2.55 billion and a net income of $1.1 billion in the past year. MGM has a trailing P/E ratio of 13.99 and a forward P/E ratio of 12.36, which is below the industry average. The company's stock price is currently trading at $36.96, which is below its 52-week high of $48.24.
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, and entertainment venues. MGM Resorts International has operations in the United States, China, and Macau. The company's largest property is the MGM Grand Las Vegas, which is the largest hotel in the United States.
Fundamental Analysis
MGM Resorts International has a strong financial position with an EBITDA of $2.55 billion and a net income of $1.1 billion in the past year. The company's revenue has grown by 9.8% in the past year, and its earnings per share have grown by 9.1%. MGM Resorts International has a strong balance sheet with $4.4 billion in cash and equivalents and $10.5 billion in total debt. The company's debt-to-equity ratio is 0.67, which is below the industry average.
Technical Analysis
MGM Resorts International's stock price is currently trading at $36.96, which is below its 52-week high of $48.24. The stock price has been in a downtrend since early 2023. The stock's 50-day moving average is $39.52, and its 200-day moving average is $41.95. The stock's relative strength index (RSI) is 35.7, which indicates that the stock is oversold.
Short Term Outlook
MGM Resorts International's stock price is expected to remain in a downtrend in the short term. The stock's technical indicators are bearish, and the company's earnings are expected to decline in the next quarter. The stock's support level is $35.00, and its resistance level is $40.00.
Long Term Outlook
MGM Resorts International's stock price is expected to rise in the long term. The company's fundamentals are strong, and the company is expected to benefit from the recovery of the travel and leisure industry. The stock's target price is $53.90, which represents a potential upside of 46%.
Analyst Recommendations
The majority of analysts have a buy rating on MGM Resorts International. The average analyst target price is $53.90, which represents a potential upside of 46%.
