Stock Analysis | Mgm Resorts International Outlook - Weak Technicals, Mixed Fundamentals, and Neutral Analyst Sentiment

Market Snapshot

Takeaway: MGM shares are showing a 9.70% price rise recently, but our internal diagnostic score for technicals is a weak 1.0 out of 10, suggesting caution for potential downside risks.

News Highlights

Recent news affecting the hospitality and restaurant sectors includes:

• On May 19, 2025, Target Hospitality reported Q1 results with a continued focus on its growth pipeline, hinting at long-term strategic gains but also exposing potential operational and regulatory risks.
• Also, on May 30, 2025, news broke that new tariffs on Canada, Mexico, and China could increase costs for commodities, potentially affecting hospitality operators like MGM through higher food and beverage costs.
• On May 29, 2025, New Engen was named the digital marketing agency of record for Loews Hotels, signaling a growing trend in digital strategy for the hospitality industry—an area in which MGM might need to stay competitive.

Analyst Views & Fundamentals

Analysts remain neutral on Mgm Resorts International, with a simple average rating of 3.00 and a performance-weighted rating of 3.30. The consensus is consistent, and the recent rating from UBS was “Neutral.” This aligns with the current positive price trend, suggesting balanced expectations.

Key fundamental factors and their internal diagnostic scores (0-10):

• ROA (Return on Assets): 2.33% (internal diagnostic score: 2.83)
• GPM (Gross Profit Margin): 3.26% (internal diagnostic score: 4.45)
• Net income to Revenue: 3.66% (internal diagnostic score: 2.36)
• Long-term debt to Working Capital ratio: 50.32% (internal diagnostic score: 2.11)
• Cash-UP: 1.00% (internal diagnostic score: 1.89)

The overall fundamental score is 3.44 out of 10, indicating mixed fundamentals with some weaker financial leverage and margin concerns.

Money-Flow Trends

Big money and institutional flows are negative for MGM, with large and extra-large investors showing a net outflow trend. In contrast, retail investors (small traders) are positive, contributing to a slight net inflow. The overall inflow ratio is 49.26%, but the block trend remains bearish, signaling caution among major investors.

Key Technical Signals

Technicals are bearish, with a weak internal diagnostic score of 1.0 out of 10. The key bearish indicators include:

• WR (Williams %R) Overbought: Score: 1.00
• RSI Overbought: Score: 1.00

Over the last 5 days, WR Overbought appeared every day, and RSI Overbought appeared on August 28 and 27. These signals are historically associated with average negative returns, particularly RSI Overbought, which historically averages a -2.69% return with a 9.09% win rate.

Insight: The momentum is clearly bearish, and the trend quality is weak—strong evidence to consider avoiding short-term entry or holding the stock.

Conclusion

Given the weak technicals, mixed fundamentals, and neutral analyst sentiment, investors should consider waiting for a pull-back or further clarification on the company's strategic execution. With overbought conditions in place and bearish momentum indicators flashing red, short-term risks outweigh potential rewards. However, keep an eye on future analyst revisions and any news related to cost management in the hospitality sector.