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Why This 1 Value Stock Could Be a Great Addition to Your Portfolio

Zacks Equity Research
·2-min read

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

MGM Resorts (MGM)

MGM Resorts International is a holding company and primarily owns and operates casino resorts through wholly owned subsidiaries. The company’s resort portfolio incorporates 31 unique hotel and gaming offerings, including some of the most familiar resort brands in the industry, such as Bellagio, MGM Grand, Mandalay Bay and The Mirage.

MGM is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 12.4X for the current fiscal year compared to the Gaming industry's P/E of 18.1X. Additionally, MGM has a PEG Ratio of 0.8 and a Price/Cash Flow ratio of 6.7X. Value investors should also note MGM's Price/Sales ratio of 0.6X.

Many value investors pay close attention to a company's earnings as well. For MGM, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.05 to $2.87 per share for 2024. Per share MGM boasts an average earnings surprise of 32.1%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding MGM to their portfolios.

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MGM Resorts International (MGM) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research