With extensive experience in traditional brick and mortar gaming operations, the transition to digital should be seamless. Online sports betting and iGaming are a secular economic mega trend that MGM should benefit massively from. MGM has several very promising business developments in the pipeline that should contribute to the top and bottom line over the very long term. MGM stock has underperformed the broad market over that period however, it was able to make an epic comeback from its Covid pandemic lows. MGM Resorts International is an internationally recognized hotel and casino brand that has performed well over the last decade. Earnings upgrades, and historically lows valuations make for a very bullish setup. As a leading franchise in the industry, with recognizable brands across the spectrum of customers, MAR is well positioned for near and long-term stock appreciation. MAR is trading at a one-year forward earnings multiple of 21x, which is below the industry average of 22x, and below its 10-year median of 24x. These are very robust growth rates for such a mature company. Analysts are projecting 11.5% growth to $5.9 billion for the quarter, and 12% growth to $23.3 billion for FY23. In response to the beat, MAR stock rallied 5%.Ĭurrent quarter sales are expected to be strong as well. Additionally, during the most recent quarterly report, MAR beat earnings expectations by 12%. Analysts are in unanimous agreement in upgrading expectations, revising current quarter estimates 6% higher and FY23 estimates 7% higher over the last 60 days. Compounding at an annual rate of 16% over that time, it has outperformed the broad market by a significant margin.Įarnings estimates for Marriot International are extremely bullish. While it has been a bumpy ride, Marriot International has been an extremely strong performing stock over the last 10 years. If so, each of these stocks could be starting a major bull run. This would run counter to the narrative of a slowing economy and may suggest a contrarian trade thesis. But with airlines, hotels and gaming companies expecting better earnings, we could be seeing the early stages of a full recovery and breakout in the tourism industry. Each of these stocks were hit very hard following the Covid pandemic, and still hover around or below their pre-Covid highs. Upgrades across these three stocks may also indicate some interesting developments brewing. Marriot International ( MAR Quick Quote MAR - Free Report), MGM Resorts International ( MGM Quick Quote MGM - Free Report), and United Airlines ( UAL Quick Quote UAL - Free Report) are all Zacks Rank #1 (Strong Buy) stocks, indicating upward trending earnings revisions, and near-term bullish expectations. The Zacks Rank is an extremely effective way to find stocks with a high likelihood of appreciating in price over the near-term, dramatically improving investors’ odds of success. The best way to stay grounded in markets like this is to utilize a proven process. Nonetheless, market indexes have been very strong. With variables like rising interest rates, inflation, geopolitical tensions, and risk of economic slowdown there are so many factors that can shake out and unnerve investors. This year has been one of the trickiest and most challenging years that I have seen in the markets.
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