MGM Resorts (MGM) Gains But Lags Market: What You Should Know

MGM Resorts (MGM) closed at $13.95 in the latest trading session, marking a +1.23% move from the prior day. This change lagged the S&P 500's 1.39% gain on the day. Meanwhile, the Dow gained 1.11%, and the Nasdaq, a tech-heavy index, added 1.65%.

Coming into today, shares of the casino and resort operator had gained 2.45% in the past month. In that same time, the Consumer Discretionary sector gained 19.15%, while the S&P 500 gained 25.31%.

Wall Street will be looking for positivity from MGM as it approaches its next earnings report date. This is expected to be April 30, 2020. On that day, MGM is projected to report earnings of -$0.17 per share, which would represent a year-over-year decline of 241.67%. Our most recent consensus estimate is calling for quarterly revenue of $2.55 billion, down 19.81% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.10 per share and revenue of $10.14 billion. These totals would mark changes of -128.35% and -21.43%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for MGM. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1371.01% lower. MGM currently has a Zacks Rank of #3 (Hold).

The Gaming industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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