Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified MGM Resorts International as such a stock due to the following factors:
- MGM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $173.3 million.
- MGM traded 72,705 shares today in the pre-market hours as of 8:56 AM.
- MGM is up 2.5% today from Friday's close.
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More details on MGM:
MGM Resorts International, through its wholly owned subsidiaries, owns and/or operates casino resorts. The company operates in two segments, Wholly Owned Domestic Resorts and MGM China. Currently there are 12 analysts that rate MGM Resorts International a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for MGM Resorts International has been 7.3 million shares per day over the past 30 days. MGM Resorts International has a market cap of $12.7 billion and is part of the services sector and leisure industry. The stock has a beta of 2.11 and a short float of 6.6% with 3.76 days to cover. Shares are up 12.2% year-to-date as of the close of trading on Friday.
rates MGM Resorts International as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 6.5%. Since the same quarter one year prior, revenues rose by 11.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 2000.00% and other important driving factors, this stock has surged by 61.66% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- 37.27% is the gross profit margin for MGM RESORTS INTERNATIONAL which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, MGM's net profit margin of 4.11% significantly trails the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, MGM RESORTS INTERNATIONAL's return on equity significantly trails that of both the industry average and the S&P 500.
- The debt-to-equity ratio is very high at 2.98 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, MGM maintains a poor quick ratio of 0.78, which illustrates the inability to avoid short-term cash problems.
- You can view the full MGM Resorts International Ratings Report.