MGM Resorts (MGM): Is the Stock Undervalued After Recent Performance?

MGM Resorts International (MGM) stock has caught some attention lately, with shares showing a roughly 10% drop over the past 3 months. Investors are weighing recent performance and broader market conditions to figure out where things might head next.

See our latest analysis for MGM Resorts International.

Looking beyond the recent three-month slide, MGM Resorts International’s share price has seen momentum fade a bit compared to last year, and its 1-year total shareholder return is modestly down. Even so, steady revenue and earnings growth suggest the outlook is not all doom and gloom.

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With shares trading about 40% below analyst targets and key growth figures holding steady, the big question becomes whether MGM Resorts International is undervalued, or if the market has already factored in its future prospects. Is there real upside left for investors?

Most Popular Narrative: 29.2% Undervalued

With MGM Resorts International trading at $33.93, the most widely followed narrative estimates fair value much higher, creating a sizable gap for investors to consider.

MGM's strong focus on expanding its digital gaming and sports betting segments, including BetMGM North America and rapid progress in international markets like Brazil, is expected to unlock higher-margin, faster-growing revenue streams. This may positively impact both long-term revenue growth and company EBITDA margins.

Read the complete narrative.

Wondering how this ambitious online expansion could reshape the company’s value? One core assumption fueling the upside involves a major surge in profitability. Find out what’s driving these optimistic numbers inside the full story.

Result: Fair Value of $47.92 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing challenges in Las Vegas visitation and heavy capital spending could still limit MGM’s gains if trends shift or if projects face delays.

Find out about the key risks to this MGM Resorts International narrative.

Build Your Own MGM Resorts International Narrative

If you see things differently or want to dive deeper into the numbers yourself, it only takes a few minutes to shape your own view and Do it your way.

A great starting point for your MGM Resorts International research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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