58.7 F
New York
Tuesday, October 27, 2020

MGM Resorts International (NYSE:MGM) is Gaining Momentum on Earnings Catalyst

Must read

Inpixon (NASDAQ:INPX) is Holding Steady

Inpixon (INPX) shares are trading at lower $1.03. To add more color to this target, the company’s high over the last year is $29.25...

The Forecast Just Changed on Embraer S.A. (NYSE:ERJ)

Embraer S.A. (ERJ) shares are trading at lower $4.85 and the avg recommendation for the stock is Hold, while the current analyst price target...

Azul S.A. (NYSE:AZUL) Recent Earnings Shows Major Concern

Azul S.A. (AZUL) shares are trading at lower $13.99 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

Vuzix Corporation (NASDAQ:VUZI) is Waving the Bear Flag

Vuzix Corporation (VUZI) shares are trading at lower $4.20 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

MGM Resorts International (MGM) shares are trading at lower $21.19 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $19.27.

To add more color to this target, the company’s high over the last year is $34.63 and the low is $5.90. Over the last 52 weeks, MGM is down -25.04% while the S&P 500 is up 8.70%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, MGM reported a profit of $-84.56 million. MGM Resorts International also saw revenues decrease to $289.81 million. In addition, MGM has free cash flow of -$1.23 billion as of 06-2020. The company’s EBITDA came in at -$727.36 million which compares well with its peers.

MGM booked profit margins of 21.70%, its Return on Equity (ROE) is 26.80%, and its Return on Assets is 5.50%. All told, it is clear that, MGM needs to be on your watchlist.

Find out when MGM reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.

Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. MGM has a short ratio of 2.15 and outstanding shares of 493.46M.

Company Outlook

MGM has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 17.11 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 3.80. MGM Resorts International MGM also noted assets of $37.47 billion at the end of the last quarter. Investors should also keep an eye on sector updates as MGM has historically followed its peers on positive news.

All told, MGM Resorts International MGM has strung together solid data and demonstrated underlying fundamentals. At its current valuation, MGM represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

MGM Resorts International MGM is now commanding a market cap of 10.69B and a float of 430.48M. MGM is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of MGM stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in MGM, either long or short, and we have not been compensated for this article.

Latest article

Trxade Group Inc. (NASDAQ:MEDS) is Holding Steady

Trxade Group Inc. (MEDS) shares are trading at higher $6.20 and the avg recommendation for the stock is Strong Buy. To add more color...

Investor Confidence is Falling for American Campus Communities Inc. (NYSE:ACC)

American Campus Communities Inc. (ACC) shares are trading at lower $37.05 and the avg recommendation for the stock is Moderate Buy, while the current...

State Street Corporation (NYSE:STT) is Gaining Momentum on Earnings Catalyst

State Street Corporation (STT) shares are trading at lower $63.51 and the avg recommendation for the stock is Moderate Buy, while the current analyst...

The Rejuvenation of 2U Inc. (NASDAQ:TWOU)

2U Inc. (TWOU) shares are trading at lower $36.47 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

Builders FirstSource Inc. (NASDAQ:BLDR) Recent Earnings Shows Major Concern

Builders FirstSource Inc. (BLDR) shares are trading at lower $31.69 and the avg recommendation for the stock is Strong Buy, while the current analyst...