MGM Resorts International (MGM): Today's Featured Services Winner

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 Services sector higher today making it today's featured services winner. The sector as a whole closed the day up 0.6%. By the end of trading, MGM Resorts International rose 25 cents (2.6%) to $9.89 on average volume. Throughout the day, 9.7 million shares of MGM Resorts International exchanged hands as compared to its average daily volume of 9.8 million shares. The stock ranged in a price between $9.61-$9.91 after having opened the day at $9.66 as compared to the previous trading day's close of $9.64. Other companies within the Services sector that increased today were: LodgeNet Interactive Corporation ( LNET), up 105.5%, Charm Communications ( CHRM), up 17.9%, Innovaro ( INV), up 16.6%, and ALCO Stores ( ALCS), up 13.7%.
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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 $4.7 billion and is part of the leisure industry. The company has a P/E ratio of -7.3, below the S&P 500 P/E ratio of 17.7. Shares are down 8% 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, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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