MGM Resorts International (MGM), headquartered in Las Vegas, Nevada, owns and operates casino, hotel, and entertainment resorts. Valued at $9.2 billion by market cap, the company offers accommodation, dining, meeting, convention, and hospitality management services for casino and non-casino properties.

Companies worth $2 billion or more are generally described as “mid-cap stocks,” and MGM perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the resorts & casinos industry. MGM is a luxury entertainment leader, leveraging its strong brand equity to command premium pricing and attract high-value customers. With a diversified portfolio of properties catering to various demographics, the company ensures resilient revenue streams. By focusing on customer satisfaction and investing in digital innovation like AI and cloud computing, MGM enhances operational efficiency, personalizes experiences, and drives growth.

Despite its notable strength, MGM shares have slipped 29.6% from their 52-week high of $47.26, achieved on Jul. 17, 2024. Over the past three months, MGM stock has gained 5.8%, underperforming the Nasdaq Composite’s ($NASX) 10.4% gains during the same time frame. 

In the longer term, shares of MGM dipped 4% on a YTD basis and fell 20.8% over the past 52 weeks, underperforming NASX’s YTD gains of 1.7% and 11% returns over the last year.

To confirm the bearish trend, MGM has been trading below its 200-day moving average since early August, with slight fluctuations. However, the stock has been trading above its 50-day moving average since early May.

MGM's weaker revenue from its Las Vegas Strip Resorts and MGM China segments, led to a decline in its performance. This was mainly caused by lower casino revenues and decreased non-gaming revenues due to a drop in average daily rate after the Super Bowl was hosted in Las Vegas the previous year.

On Apr. 30, MGM shares closed down more than 1% after reporting its Q1 results. Its adjusted EPS of $0.69 surpassed Wall Street expectations of $0.50. The company’s revenue was $4.28 billion, beating Wall Street forecasts of $4.27 billion.

MGM’s rival, Caesars Entertainment, Inc. (CZR) shares lagged behind the stock, declining 14.7% on a YTD basis and 27.2% over the past 52 weeks.

Wall Street analysts are bullish on MGM’s prospects. The stock has a consensus “Strong Buy” rating from the 18 analysts covering it, and the mean price target of $45.44 suggests a potential upside of 36.7% from current price levels.