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Is MGM Resorts (MGM) the Best Entertainment Stock to Buy According to Analysts?

Eli GrantWednesday, Dec 18, 2024 4:00 pm ET

3min read

MGM --

MGM Resorts International (MGM) is a leading global entertainment company with a diverse portfolio of casino, hotel, and entertainment resorts. With a strong focus on growth and expansion, MGM Resorts has been making strategic moves to boost its revenue and market share. But is MGM Resorts the best entertainment stock to buy according to analysts? Let's dive into the company's recent performance, strategic initiatives, and analysts' opinions to find out.

MGM Resorts' recent performance
MGM Resorts' revenue in 2023 was $16.12 billion, a 23.21% increase from the previous year's $13.08 billion. However, earnings decreased by -20.60% to $1.14 billion. Despite the earnings decline, analysts remain bullish on MGM Resorts' growth prospects.

MGM Resorts' strategic initiatives
MGM Resorts has been expanding its reach through strategic partnerships and diversification. Its collaboration with Marriott International (MAR) to launch the W Las Vegas hotel is expected to enhance MGM Resorts' appeal to a broader range of customers and drive revenue growth. Additionally, MGM Resorts' expansion into the online gaming and sports betting market through BetMGM has been a significant driver of revenue growth, with a 114% YoY increase in revenue to $1.1 billion in 2023.

Analysts' opinions on MGM Resorts
Analysts have a strong consensus on MGM Resorts, with an average rating of 'Strong Buy' and a 12-month price target of $53.08, indicating a 56.42% upside from the latest price. Analysts praise MGM Resorts' strategic initiatives and believe that the company's expansion into new markets and segments will drive long-term growth.

MGM Resorts' stock valuation
MGM Resorts' stock is currently trading at $36.69, with a 52-week high of $48.25. The stock has seen significant growth in recent years, with a 5-year CAGR of 14.57%. Despite the recent earnings decline, analysts' bullish outlook on the company's growth prospects suggests that the stock may continue to rise.

In conclusion, MGM Resorts' strategic initiatives, analysts' bullish outlook, and strong stock performance make it an attractive investment option. While the recent earnings decline is a concern, analysts believe that the company's growth prospects remain intact. As such, MGM Resorts may be the best entertainment stock to buy according to analysts. However, investors should always conduct their own research and consider their risk tolerance before making any investment decisions.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.