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 up 0.7%. By the end of trading, MGM Resorts International fell 28 cents (-2.6%) to $10.31 on heavy volume. Throughout the day, 15.3 million shares of MGM Resorts International exchanged hands as compared to its average daily volume of 9.5 million shares. The stock ranged in price between $10.10-$10.50 after having opened the day at $10.40 as compared to the previous trading day's close of $10.59. Other companies within the Leisure industry that declined today were: Ignite Restaurant Group ( IRG), down 13.6%, Nathans Famous ( NATH), down 5.8%, Speedway Motorsports ( TRK), down 4.2%, and Hyatt Hotels Corporation ( H), down 4.1%.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

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 $5.18 billion and is part of the services sector. Shares are up 1.5% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate MGM Resorts International a buy, no analysts rate it a sell, and eight 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, Red Robin Gourmet Burgers ( RRGB), up 21.5%, Asia Entertainment & Resources ( AERL), up 12.3%, DineEquity ( DIN), up 8.8%, and PokerTek ( PTEK), up 6.6%, were all gainers within the leisure industry with Las Vegas Sands ( LVS) 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).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.

null

More from Markets

Stocks Search for Direction as Trump Comments Lead to Worries Over China Talks

Stocks Search for Direction as Trump Comments Lead to Worries Over China Talks

Owner of Moviepass Sees Stock Plummet

Owner of Moviepass Sees Stock Plummet

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

General Electric's Stock Gets Routed as CEO Flannery Flubs Presentation

General Electric's Stock Gets Routed as CEO Flannery Flubs Presentation

Italy's President Gives Mandate For Anti-European Government in Rome

Italy's President Gives Mandate For Anti-European Government in Rome