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Here's Why MGM Resorts (MGM) is a Strong Value Stock

Zacks Equity Research
·2-min read

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

MGM Resorts (MGM)

MGM Resorts International is a holding company and primarily owns and operates casino resorts through wholly owned subsidiaries. The company’s resort portfolio incorporates 31 unique hotel and gaming offerings, including some of the most familiar resort brands in the industry, such as Bellagio, MGM Grand, Mandalay Bay and The Mirage.

MGM boasts a Value Style Score of A and VGM Score of A, and holds a Zacks Rank #1 (Strong Buy) rating. Shares of MGM Resorts are trading at a forward earnings multiple of 15X, as well as a PEG Ratio of 0.9, a Price/Cash Flow ratio of 8.3X, and a Price/Sales ratio of 0.8X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.01 to $2.92 per share. MGM has an average earnings surprise of 27.3%.

Investors should take the time to consider MGM for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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MGM Resorts International (MGM) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research