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

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

MGM Resorts International ( MGM) pushed the Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole closed the day down 0.1%. By the end of trading, MGM Resorts International fell 18 cents (-1.6%) to $11.05 on average volume. Throughout the day, 7.6 million shares of MGM Resorts International exchanged hands as compared to its average daily volume of 9.9 million shares. The stock ranged in price between $10.94-$11.14 after having opened the day at $10.98 as compared to the previous trading day's close of $11.23. Other companies within the Leisure industry that declined today were: Bravo Brio Restaurant Group ( BBRG), down 5.3%, Isle of Capri Casinos ( ISLE), down 3.6%, Nevada Gold & Casinos ( UWN), down 3.4%, and Canterbury Park Holding Corporation ( CPHC), down 3.2%.
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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 $5.58 billion and is part of the services sector. Shares are up 7.7% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate MGM Resorts International a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates MGM Resorts International as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and feeble growth in its earnings per share.

On the positive front, Country Style Cooking Restaurant Chain ( CCSC), up 6.1%, Empire Resorts ( NYNY), up 5.2%, Del Frisco's Restaurant Group ( DFRG), up 3.7%, and Nathans Famous ( NATH), up 2.7%, were all gainers within the leisure industry with McDonald's Corporation ( MCD) being today's featured leisure industry leader.

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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