MGM Resorts Stock: Poised for Hospitality Industry Rebound

Core Viewpoint - MGM Resorts International is positioned as a relatively strong player in the struggling casino sector, with a year-to-date decline of only 3.67% compared to larger declines in competitors like Las Vegas Sands and Wynn Resorts [1] Group 1: Company Overview - MGM operates 18 properties in the U.S. and Macau, including iconic Las Vegas locations such as Bellagio and Mandalay Bay, with a combined 17% market share in Macau [2] - The company has partnered with Marriott International to launch the MGM Collection, allowing loyalty members to earn points across 16 properties [3] Group 2: Strategic Initiatives - MGM is expanding its online sports betting and iGaming business through its 50% ownership of BetMGM and the acquisition of Tipico's U.S. sportsbook, expected to close in Q3 2024 [4] - The company has added live dealer table games to its online offerings, enhancing the digital gaming experience [5] Group 3: Financial Performance - MGM reported Q1 2024 earnings with EPS of 78 cents, exceeding estimates by 18 cents, and revenues of $4.4 billion, a 13.2% year-over-year increase [7] - Las Vegas Strip resorts generated $2.3 billion in revenue, while MGM China saw a 71% increase in revenues to $1.1 billion [8] Group 4: Market Sentiment and Analyst Ratings - Analysts have shown favorable sentiment towards MGM, with a MarketRank of 4.73 out of 5 and a price target of $54, indicating a potential upside of 26.7% [10] - Recent ratings upgrades from analysts suggest confidence in MGM's digital segment and operations in Las Vegas and China as key growth drivers [10]