MGM Resorts International (MGM): Today's Featured Leisure Laggard

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 Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole closed the day down 1.7%. By the end of trading, MGM Resorts International fell $1.51 (-5.9%) to $23.92 on heavy volume. Throughout the day, 21,715,579 shares of MGM Resorts International exchanged hands as compared to its average daily volume of 11,174,400 shares. The stock ranged in price between $23.39-$25.11 after having opened the day at $24.99 as compared to the previous trading day's close of $25.43. Other companies within the Leisure industry that declined today were: Chanticleer Holdings ( HOTR), down 7.6%, ( WBAI), down 6.2%, Century Casinos ( CNTY), down 5.3% and Bob Evans Farms ( BOBE), down 5.2%.

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. MGM Resorts International has a market cap of $12.9 billion and is part of the services sector. Shares are up 8.1% year to date as of the close of trading on Friday. Currently there are 13 analysts that rate MGM Resorts International a buy, no analysts rate it a sell, and 5 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 impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

On the positive front, Bravo Brio Restaurant Group ( BBRG), up 5.8%, Flanigan's ( BDL), up 2.2%, Nevada Gold & Casinos ( UWN), up 1.7% and SFX Entertainment ( SFXE), up 1.6%.

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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