Analysts Remain Optimistic on Las Vegas Strip Strength, Add MGM Resorts International as Long Idea for Second Half of the Year
January 15, 2023
Trending News ☀️
MGM Intrinsic Value – MGM ($NYSE:MGM) Resorts International is one of the world’s leading gaming, hospitality, and entertainment companies and a leader in the Las Vegas Strip. On Thursday, analysts Todd Jordan and Sean Jenkins of Hedgeye expressed their optimism for the Strip in a note, citing Las Vegas fundamentals that they deem “very bullish”. They pointed to near-term catalysts for both the gaming and non-gaming sides of the Strip, providing data points that suggest potential strength in the second half of the year. Jordan and Jenkins noted that the convention calendar on the Strip is strong, with many conventions such as CES and MAGIC Market Week continuing to draw large crowds.
Additionally, new supply is arriving on the Strip this fall in the form of Resorts World Las Vegas, which could help to drive further growth. They also highlighted visitation trends, which remain positive despite the pandemic’s impact. The company has already benefited from pent-up demand following its reopening in June, and it has continued to open its properties across the US as conditions improve. Jordan and Jenkins also noted MGM’s strong balance sheet and ongoing cost-savings initiatives, which they believe will provide additional upside potential. With its strong balance sheet and cost-savings initiatives, MGM is well-positioned to capitalize on the Strip’s near-term catalysts and potential for continued growth.
Market Price
The stock opened at $38.8 and closed at $38.9, up by 0.9% from its prior closing price of 38.6. The company is still among the top players in the market, and its portfolio of resorts and casinos is expected to bring in considerable profits in the coming months. This new property has been designed to offer guests a unique experience, with luxury accommodations and amenities. The Park MGM is expected to be a major draw for visitors, both domestic and international. MGM Resorts International is also investing in its loyalty program, which rewards customers for their loyalty with discounts and other perks.
This program is seen as an important way for the company to increase customer loyalty and build its brand. With its strong portfolio of resorts and casinos, as well as investments in new projects and customer loyalty programs, analysts believe that the company will continue to generate strong returns in the second half of the year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for MGM. More…
| Total Revenues | Net Income | Net Margin |
| 12.59k | 1.28k | -1.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for MGM. More…
| Operations | Investing | Financing |
| 1.82k | 1.45k | -3.5k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for MGM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 47.33k | 41.37k | 12.45 |
Key Ratios Snapshot
Some of the financial key ratios for MGM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.5% | -24.9% | 23.4% |
| FCF Margin | ROE | ROA |
| 9.5% | 20.6% | 2.3% |
VI Analysis – MGM Intrinsic Value
MGM Resorts International is a great example of how the fundamentals of a company can offer insight into its long-term potential. The VI app makes it easy to access and analyze the company’s financials, making it easier to assess the stock’s value. According to VI Line, MGM Resorts International’s fair value is around $60.8 per share. Currently, the company’s stock is trading at $38.9, making it undervalued by 36%. Investors should take this into consideration when making investment decisions. More…
VI Peers
MGM Resorts International is one of the world’s leading global hospitality companies, operating a portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay, The Mirage, and more. The company’s competitors include SkyCity Entertainment Group Ltd, Wyndham Hotels & Resorts Inc, and Cruzani Inc.
– SkyCity Entertainment Group Ltd ($NZSE:SKC)
SkyCity Entertainment Group Ltd is a casino and hospitality company based in New Zealand. The company has a market cap of 2B as of 2022 and a Return on Equity of 3.48%. SkyCity operates four casinos in New Zealand, two in Australia, and one in Chile. The company also has a number of hotels, restaurants, and bars.
– Wyndham Hotels & Resorts Inc ($NYSE:WH)
Wyndham Hotels & Resorts, Inc. is one of the largest hotel companies in the world, with over 9,000 hotels across more than 80 countries. The company offers a variety of hotel brands, including Wyndham, Ramada, Days Inn, Super 8, and Howard Johnson. Wyndham Hotels & Resorts is headquartered in Parsippany, New Jersey. The company’s market cap is 6.2B as of 2022 and its ROE is 30.65%.
Summary
Analysts are bullish on MGM Resorts International, a leading hospitality and entertainment company, for the second half of the year. They believe the Las Vegas Strip’s strength will continue to be a major factor in the company’s success. Furthermore, analysts are recommending MGM Resorts as a long-term investment opportunity and suggest that investors should watch for developments in the company’s lodging, gaming, dining and entertainment sectors. They also encourage investors to look for potential growth opportunities related to the company’s resorts, including expansion, renovation and new projects.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
