Melco Resorts & Entertainment (MLCO) Soars 3.72% on Strong Q1 Earnings

Melco Resorts & Entertainment (MLCO) shares surged 3.72% today, marking the fifth consecutive day of gains, with a 16.30% increase over the past five days. The stock price reached its highest level since March 2025, with an intraday gain of 7.98%.

The strategy of buying MLCO shares after they reached a recent high and holding for 1 week resulted in a 6.91% return over the past 5 years, which is the forward rate of return (Yacktman) for Melco Resorts and Entertainment. This indicates that this strategy has been successful in capturing the company's growth and dividend payments over the period.

Recent High Point: The recent high point for MLCO shares was $8.90, which was the 52-week high as of May 8, 2025.

One-Week Holding: Holding MLCO shares for 1 week resulted in a 6.91% return, which is the forward rate of return (Yacktman) for the company.

Five-Year Performance: Over the past 5 years, MLCO's forward rate of return has ranged from a low of -5.59% to a high of 20%, with a median of 3.71%. The 6.91% return achieved by holding MLCO shares after they reached a recent high is within this range, indicating that this strategy has been effective despite some fluctuations in the company's performance.

In conclusion, buying MLCO shares after they reached a recent high and holding for 1 week is a viable strategy for capturing the company's growth and dividend payments over the past 5 years, with a forward rate of return (Yacktman) of 6.91%.

Melco Resorts & Entertainment reported a robust first quarter of 2025, with Adjusted Property EBITDA rising to $341.0 million from $298.8 million in the same period last year. Net income also saw a significant increase, reaching $32.53 million, or $0.078 per share, compared to $15.17 million, or $0.035 per share, in 2024. The company's adjusted earnings stood at $51.08 million, or $0.122 per share, with revenue growing by 10.8% to $1.232 billion from $1.112 billion in the previous year. This strong financial performance, characterized by higher revenue and earnings, is likely to influence MLCO's stock price positively. Additionally, an analyst from Morgan Stanley maintained a Buy rating on MLCO, which could further boost investor confidence and drive stock movement.