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 0.6%. By the end of trading, MGM Resorts International fell $0.21 (-1.4%) to $14.75 on light volume. Throughout the day, 5,714,325 shares of MGM Resorts International exchanged hands as compared to its average daily volume of 10,271,400 shares. The stock ranged in price between $14.71-$15.06 after having opened the day at $14.91 as compared to the previous trading day's close of $14.96. Other companies within the Leisure industry that declined today were: Empire Resorts ( NYNY), down 5.5%, Century Casinos ( CNTY), down 4.0%, Renren ( RENN), down 3.9% and Premier Exhibitions ( PRXI), down 3.7%.
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MGM Resorts International, through its wholly owned subsidiaries, owns and/or operates casino resorts. The company operates in two segments, Wholly Owned Domestic Resorts and MGM China. Its resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. MGM Resorts International has a market cap of $7.2 billion and is part of the services sector. Shares are up 28.5% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate MGM Resorts International a buy, no analysts rate it a sell, and 9 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 revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk.

On the positive front, Kona Grill ( KONA), down 2.6%, Chanticleer Holdings ( HOTR), down 2.5%, Ark Restaurants ( ARKR), down 2.3% and SeaWorld Entertainment ( SEAS), down 2.2% , were all gainers within the leisure industry with Ryman Hospitality Properties ( RHP) 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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