MGM Stock Analysis — MGM Resorts International
Sector: Hospitality & Gaming
AI Verdict
MGM trades at 24.1x next year's earnings—expensive for a hospitality stock—so you're paying up for its Vegas and Macau moat, and the numbers only justify that if the 13.4% EPS growth materializes.
Competitive Moat
MGM operates destination casinos and resorts with prime real estate on the Las Vegas Strip and in Macau, giving it irreplaceable physical assets and regulatory barriers to entry. Its integrated resort model—combining gaming, entertainment, and hospitality—creates cross-selling opportunities and customer loyalty that are hard for new entrants to replicate.
Summary
MGM's forward P/E of 24.1x and 13.4% expected EPS growth put it at a valuation premium to most hospitality peers.
Where It Stands
MGM is up 30.11% over the past year, trades at 24.1x next year's earnings (above the 20x industrials median), and its RSI of 41.0 signals it's cooling after recent gains.
Key Metrics
- RSI: 41 — Neutral
- Trailing P/E: 27.4x
- Forward P/E: 24.1x
- PEG Ratio: 2.04
- Earnings Growth: +0.1%
- Revenue Growth: +0.0%
- Market Cap: $11.2B
- Dividend Yield: 0.00%
- 1-Year Return: 30.11%
- 52-Week High: $51.59
- 52-Week Low: $29.19
Analyst Consensus
15 Buy · 13 Hold · 2 Sell (30 analysts) · Target $48.00
Bull Case
With analysts expecting 13.4% EPS growth and a forward P/E of 24.1x, investors are paying a fair premium for steady earnings expansion in a sector with high barriers to entry.
Bear Case
If the P/E reverts from 24.1x to the sector median of 20x, the stock could lose roughly 17% even if earnings meet expectations.
Catalyst to Watch
Watch for quarterly earnings beats or misses, as any surprise in EPS growth versus the 13.4% consensus could quickly shift sentiment.