MGM Stock Analysis — MGM Resorts International
Sector: Consumer Discretionary
AI Verdict
MGM trades at 26.1x next year's earnings with huge growth expectations, so you're getting a fair price for a big rebound—but if the Vegas moat doesn't deliver, the stock is exposed to a sharp pullback.
Competitive Moat
MGM operates a portfolio of destination casino resorts with valuable real estate on the Las Vegas Strip, creating high barriers to entry for new competitors. Its scale and integrated loyalty program drive repeat business and cross-property spend, giving it pricing power in a consolidated market.
Summary
MGM is oversold on an RSI of 31.0 while analysts expect a massive 152.4% jump in earnings next year.
Where It Stands
MGM has returned 20.01% over the past year, trades at 26.1x next year's earnings (just above the 20x sector median for consumer discretionary), and its RSI of 31.0 signals oversold territory.
Key Metrics
- RSI: 31 — Near Oversold
- Trailing P/E: 65.8x
- Forward P/E: 26.1x
- PEG Ratio: 0.44
- Earnings Growth: +1.5%
- Revenue Growth: +0.0%
- Market Cap: $11.7B
- Dividend Yield: 0.00%
- 1-Year Return: 20.01%
- 52-Week High: $51.59
- 52-Week Low: $29.19
Analyst Consensus
15 Buy · 12 Hold · 3 Sell (30 analysts) · Target $46.83
Bull Case
Forward EPS growth of 152.4% paired with a 26.1x forward P/E means you're paying a low price for an expected earnings surge if the rebound materializes.
Bear Case
If the forward P/E reverts to the sector median of 20x, the stock could see a 23% multiple compression even if earnings hit targets.
Catalyst to Watch
Quarterly earnings beats or misses will quickly reset expectations for that 152.4% EPS growth, making each report a binary event.