WU - MGM Resorts and Bloomin' Brands Have Been Highlighted as Zacks Bull and Bear of the Day | Benzinga
For Immediate Release
Chicago, IL – June 5, 2024 – Zacks Equity Research shares MGM Resorts International (NYSE: MGM) as the Bull of the Day and Bloomin' Brands (NASDAQ: BLMN) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Western Union Co. (NYSE: WU), The Bank of N.T. Butterfield & Son Ltd. (NYSE: NTB) and NewtekOne, Inc. (NASDAQ: NEWT).
Here is a synopsis of all five stocks:
Bull of the Day:
MGM Resorts International is a Zack Rank #1 (Strong Buy) that owns and operates casino, hotel, and entertainment resorts in the United States and internationally.
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.
The stock continues to struggle in 2024, but investors might be overlooking the value opportunity that exists.
About the Company
MGM was incorporated in 1986, has a market cap of $12 billion, and employs over 58,000.
The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China.
The stock has a Zacks Style Score of "A" in Value and "C" in both Growth and Momentum. The stock has a Forward PE of 14, making it attractive for value investors.
Q1 Earnings
In early May, MGM reported a 23% EPS beat and a beat on revenues. Las Vegas Strip RevPar and occupancy were both up year over year and consolidated adjusted EBITDAR was $1.23B v $1.19B last quarter.
China impressed, seeing Net Revenues up to $1.1B v the $618M last year, while EBITDAR came in at $301M v the $169M last year.
The company bought 12M shares in Q1, which is part of its strategic growth plan to utilize free cash flow.
The stock reacted with volatility both up and down and the MGM currently sits around the same levels as when the company reported.
Since earnings, Nevada has reported casino gaming revenue +7%, which is a positive for the sector. Additionally, analyst have been taking their estimates higher since the earnings report.
Estimates Rising
Over the last 60 days, estimates for the current quarter have gone up by 23%, from $0.55 to $0.68.
For the current year, numbers have been taken from $2.48 to $2.82. This is a 13% move higher since EPS.
The trend continues for next year, with estimates going up 16% for that timeframe, moving from $2.70 to $3.11.
The stock has seen some upgrades since earnings, with JPMorgan reiterating their Overweight and $57 price target.
Susquehanna went to Net Positive from Net Neutral and took its target to $54 from $46.
The Technical Take
Looking at the chart, you can see the stock is at the same level that it was back in November of 2023. Since then, the overall stock market has been up over 20%, so this stock is being overlooked despite the solid earnings reports.
The bulls have some work to do, and investors should be watching the stock closely to see if a rally might be coming.
The first sign would be a move over the 200-day moving average resistance at $41.50. Right behind that is the 50-day MA $42.30.
There has been a lot of support in the $38.50-$40 area. This is the 61.8% Fibonacci zone that can be found by drawing from October lows to 2024 highs.
A continued defense of this area would signal long-term buying and a chance to return to those recent highs and beyond.
In Summary
MGM is generating free cash flow and buying its stock back. Earnings have been positive and earnings estimates have been going higher.
Yet despite these positives, the stock is teasing 2024 lows, clinging to long-term support.
The current ...