Where Will MGM Resorts Stock Be in 5 Years?

Core Viewpoint - MGM Resorts has experienced significant growth post-pandemic, but must explore new international markets for long-term growth as Las Vegas gambling reaches maturity [1][4]. Group 1: Financial Performance - MGM's third-quarter earnings showed a 5% year-over-year revenue increase to a record $4.2 billion, aided by the recovery in Macau [2]. - The company generated$8.1 billion in revenue for the full year 2023, with expectations of sharing Japanese sales with local partners from the new Osaka resort [7]. Group 2: Market Expansion - MGM has received certification to develop a $10 billion integrated resort in Osaka, Japan, expected to open in 2029, with potential first-year revenue of$5 billion [6]. - The company has a diversified portfolio, including operations in Las Vegas and regional casinos across the U.S., which mitigates risks from market weaknesses [3]. Group 3: Stock Valuation and Shareholder Returns - MGM's stock trades at a forward price-to-earnings (P/E) multiple of around 14, significantly lower than the S&P 500 estimate of 23, indicating a potential undervaluation [8]. - The company has repurchased $1.3 billion worth of stock year-to-date, reducing shares outstanding by 40% since 2021, which may enhance earnings per share and investor ownership [9].