MGM Resorts International (MGM) Stock

MGM Resorts International trades at a P/E ratio of 19.43, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 12.74 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.60 indicates reasonable value when growth is considered.

With a beta of 1.69, MGM Resorts International is significantly more volatile than the market. For every 10% market move, this stock tends to move 17% in the same direction. Higher beta stocks offer greater potential returns but with increased risk. The price-to-book ratio of 3.26 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

MGM Resorts International achieves a profit margin of 3.14%, meaning it retains $3.14 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 8.60% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 21.80% and ROA at 2.21%, the company generates strong returns on invested capital.

MGM Resorts International's revenue grew by 1.80% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 70.10% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against RESORTS & CASINOS industry averages for proper context.

MGM Resorts International has a market capitalization of $9.9B, classifying it as a mid-cap stock ($2B-$10B). Mid-caps often represent companies in their growth phase, offering higher growth potential than large-caps but with more stability than small-caps. They can be attractive takeover targets and may become tomorrow's large-caps. With 272.19M shares outstanding, the company's ownership is relatively concentrated. As a participant in the RESORTS & CASINOS industry, it competes with other firms in this sector.

MGM Resorts International's book value per share is $10.93, while the current stock price is $29.40, resulting in a price-to-book (P/B) ratio of 2.69. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

22 analysts cover MGM with 64% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $47.58 implies 61.8% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:2 Strong Buy, 12 Buy, 7 Hold, 1 Sell, 0The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.