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MGM Resorts (MGM) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

In the latest trading session, MGM Resorts (MGM) closed at $18.97, marking a -1.96% move from the previous day. This change lagged the S&P 500's daily loss of 0.36%. Elsewhere, the Dow lost 0.65%, while the tech-heavy Nasdaq added 0.15%.

MGM will be looking to display strength as it nears its next earnings release. In that report, analysts expect MGM to post earnings of -$1.52 per share. This would mark a year-over-year decline of 760.87%. Our most recent consensus estimate is calling for quarterly revenue of $541.92 million, down 83.19% from the year-ago period.

MGM's full-year Zacks Consensus Estimates are calling for earnings of -$1.21 per share and revenue of $6.56 billion. These results would represent year-over-year changes of -131.19% and -49.11%, respectively.

It is also important to note the recent changes to analyst estimates for MGM. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.48% lower. MGM is currently a Zacks Rank #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow MGM in the coming trading sessions, be sure to utilize Zacks.com.


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