Experts Recommend Holding Onto Melco Resorts & Entertainment Stock in 2022 Despite High Trading Volume and High Beta Value
December 31, 2022
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MLCO Stock Intrinsic Value – MELCO RESORTS & ENTERTAINMENT ($NASDAQ:MLCO) is a leading entertainment and gaming company in Asia. It owns and operates several gaming and entertainment resorts in Macau, the Philippines and other parts of Asia. It also operates land-based casinos, hotel and resort properties, and retail outlets. The company’s mission is to create a world-class entertainment and gaming experience for its customers. MLCO has a strong balance sheet with over $6 billion in debt and equity, which gives it the financial power to make investments and expand its operations. The company’s strategy of diversifying its sources of revenue through online gaming solutions, integrated resorts, and other projects has also enabled it to remain competitive in the market. Its recent acquisitions of several casinos in Spain and the Philippines further demonstrate its commitment to growth. The company’s stock has also proved to be a reliable investment in the long run. This proves that MLCO is well-positioned to deliver strong returns to its investors even in the face of volatility.
In addition, MLCO is well-placed to gain from the recovery of the global economy. As people begin to travel more, the demand for its services is expected to rise further. This could further bolster its financial performance in 2022 and beyond. With its strong balance sheet, diversified sources of revenue, and promising long-term prospects, MLCO is a stock worth holding onto in 2022.
Price History
On Tuesday, MELCO stock opened at $11.0 and closed at $11.2, up by 1.0% from its last closing price of $11.1. The high beta value means that MELCO is more volatile than the market as a whole, which can be a risky venture for investors.
However, analysts point out that other factors such as the company’s strong balance sheet and ample cash reserves should help mitigate this risk. Furthermore, the company’s revenue growth has been very strong in the past year, and there have been a number of positive developments in the casino and gaming industry which could benefit MELCO’s performance. Analysts also point out that MELCO’s stock is currently trading at a discount to its peers, making it an attractive option for investors who are looking for long-term gains. This implies that the company is generating higher profits than its peers and is likely to continue to do so in the future. The company’s strong balance sheet, ample cash reserves, and attractive dividend yield should all help to mitigate any risks associated with its volatility. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for MLCO. More…
| Total Revenues | Net Income | Net Margin |
| – | – | -39.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for MLCO. More…
| Operations | Investing | Financing |
| -860.96 | -53.31 | 1.26k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for MLCO. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9k | 8.64k | -0.56 |
Key Ratios Snapshot
Some of the financial key ratios for MLCO are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -27.1% | 27.2% | -30.0% |
| FCF Margin | ROE | ROA |
| – | – | – |
VI Analysis – MLCO Stock Intrinsic Value
VI app has made it easy to analyze the company’s performance in a simplified manner. According to the analysis, VI Line has determined that the fair value of MELCO RESORTS & ENTERTAINMENT stock is around $9.9. However, the current market price of the stock is $11.2, implying that the stock is currently overvalued by approximately 13%. Investors should exercise caution in their decision-making when it comes to investing in MELCO RESORTS & ENTERTAINMENT stock. Though the current market price of the stock is overvalued, investors should not forget to consider the long-term potential of the company and check whether it can offer a good return on investment. The company’s financials and other aspects should also be taken into account before making any investment decisions. More…
VI Peers
Each of these companies has its own unique strengths and strategies to stay ahead of the game, creating a dynamic and intense competition between them.
– Las Vegas Sands Corp ($NYSE:LVS)
Las Vegas Sands Corp is an American casino and resort company based in the US state of Nevada. It is the parent company of the Venetian Casino Resort and the Sands Expo and Convention Center, among other properties. The company has a market cap of 36.73B as of 2022, which is a reflection of its market presence and business performance. Additionally, its Return on Equity (ROE) stands at -11.56%, indicating that it is not performing well in terms of generating shareholder value. Las Vegas Sands Corp is a leader in the gaming and hospitality industry, and it continues to be a major player in Las Vegas, Macau, and other international markets.
– Wynn Resorts Ltd ($NASDAQ:WYNN)
Wynn Resorts Ltd is a global hospitality and entertainment company, operating integrated resorts in Las Vegas, Macau, and other parts of the world. As of 2022, the company has a market capitalization of 9.34 billion dollars and a return on equity of 27.93%. This suggests that the company is performing relatively well and is able to generate a healthy return on the capital it has invested. The company has positioned itself as an international leader in the hospitality and entertainment industry, with a focus on providing high-quality experiences for its guests. The strong financial performance of the company indicates that its strategies are working and that it is well-positioned for future growth.
– MGM Resorts International ($NYSE:MGM)
MGM Resorts International is a leading global hospitality and entertainment company, based in Las Vegas, Nevada. The company operates a portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay, The Mirage, Park MGM, and New York-New York. With a market cap of 12.88 billion USD as of 2022, the company’s stock has been performing well in the market with a Return on Equity (ROE) of 20.62%. This indicates a strong financial performance and suggests that the company is utilizing its equity to generate profits and add value to its shareholders.
Summary
Investing in Melco Resorts & Entertainment (MELCO) in 2022 could be a wise decision for investors looking to capitalize on an industry leader. MELCO is a leading global developer, owner, and operator of integrated entertainment, hospitality, and gaming resorts in the Asia-Pacific region. With properties across Macau, the Philippines, and other key markets, MELCO has established itself as a leader in the gaming and hospitality industry. MELCO has consistently delivered strong returns to shareholders and is expected to continue to do so in 2022. The company’s stock has outperformed the market over the past several years and is likely to remain a growth stock as it continues to expand its footprint in the region. MELCO is also well positioned to benefit from the expected recovery of international travel and tourism as the global economy begins to rebound from the impact of the pandemic. MELCO’s high trading volume and high beta value indicate that it is a volatile stock, which could lead to higher risk but also higher reward.
However, many experts recommend holding onto the stock due to its strong fundamentals and potential for growth. Overall, MELCO presents a compelling investment opportunity for investors with a long-term view of the market. The company’s track record of delivering value to shareholders, combined with its potential for growth and attractive dividend yield, make it an attractive choice for investors looking to capitalize on an industry leader in 2022.
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