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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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 0.1%. By the end of trading, MGM Resorts International rose $0.39 (2.4%) to $16.35 on average volume. Throughout the day, 7,794,747 shares of MGM Resorts International exchanged hands as compared to its average daily volume of 9,958,600 shares. The stock ranged in a price between $16.03-$16.52 after having opened the day at $16.07 as compared to the previous trading day's close of $15.96. Other companies within the Services sector that increased today were: U.S. Auto Parts Network ( PRTS), up 19.2%, Boyd Gaming Corporation ( BYD), up 18.3%, R.R. Donnelley & Sons Company ( RRD), up 16.5% and Multimedia Games ( MGAM), up 11.0%.

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 $7.8 billion and is part of the leisure industry. Shares are up 36.9% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate MGM Resorts International a buy, no analysts rate it a sell, and 8 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 solid stock price performance, increase in net income and revenue growth. 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 negative front, General Employment ( JOB), down 23.7%, TOP Ships ( TOPS), down 15.8%, Spirit Airlines ( SAVE), down 8.3% and RLJ Entertainment ( RLJE), down 8.2% , were all laggards within the services sector with CVS Caremark ( CVS) being today's services sector laggard.

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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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