MGM Resorts International (MGM): Today's Featured Leisure Loser

MGM Resorts International ( MGM) pushed the Leisure industry lower today making it today's featured Leisure loser. The industry as a whole closed the day down 0.3%. By the end of trading, MGM Resorts International fell 16 cents (-1.5%) to $10.22 on average volume. Throughout the day, 10.1 million shares of MGM Resorts International exchanged hands as compared to its average daily volume of 10.4 million shares. The stock ranged in price between $10.14-$10.46 after having opened the day at $10.35 as compared to the previous trading day's close of $10.37. Other company's within the Leisure industry that declined today were: Sonic Corporation ( SONC), down 9.4%, Caesars Entertainment ( CZR), down 8%, Multimedia Games ( MGAM), down 6%, and Life Time Fitness ( LTM), down 3.1%.

MGM Resorts International, through its subsidiaries, owns and operates casino resorts. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. MGM Resorts International has a market cap of $5.13 billion and is part of the services sector. The company has a P/E ratio of two, equal to the average leisure industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 0.7% year to date as of the close of trading on Tuesday. Currently there are 15 analysts that rate MGM Resorts International a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates MGM Resorts International as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and generally poor debt management.

On the positive front, Orbitz Worldwide ( OWW), up 5.4%, Dover Motorsports ( DVD), up 3.7%, Fiesta Restaurant Group ( FRGI), up 3.1%, and Fiesta Restaurant Group ( FRGIV), up 3.1%, were all gainers within the leisure industry with Melco Crown Entertainment ( MPEL) being today's featured leisure industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the leisure industry could consider PowerShares Dynamic Leisure&Entert ( PEJ) while those bearish on the leisure industry could consider ProShares Ultra Sht Consumer Services ( SCC).
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