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 0.3%. By the end of trading, MGM Resorts International fell 27 cents (-2.2%) to $12.16 on average volume. Throughout the day, 12.9 million shares of MGM Resorts International exchanged hands as compared to its average daily volume of 11.5 million shares. The stock ranged in price between $12-$12.42 after having opened the day at $12.37 as compared to the previous trading day's close of $12.43. Other companies within the Leisure industry that declined today were: Asia Entertainment & Resources ( AERL), down 5.7%, Nevada Gold & Casinos ( UWN), down 4.3%, Granite City Food & Brewery ( GCFB), down 3.6%, and Arcos Dorados Holdings ( ARCO), down 3.5%.
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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 $6.11 billion and is part of the services sector. Shares are up 7.3% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate MGM Resorts International a buy, no analysts rate it a sell, and 11 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.

On the positive front, Boyd Gaming Corporation ( BYD), up 14.4%, Krispy Kreme Doughnuts ( KKD), up 5.5%, Papa John's International ( PZZA), up 4.9%, and Cosi ( COSI), up 4.7%, were all gainers within the leisure industry with Starbucks Corporation ( SBUX) 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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