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Is MGM Resorts International (MGM) Stock Undervalued Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is MGM Resorts International (MGM - Free Report) . MGM is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 13.63, while its industry has an average P/E of 26.46. MGM's Forward P/E has been as high as 23.60 and as low as 12.45, with a median of 16.86, all within the past year.
Investors should also note that MGM holds a PEG ratio of 0.87. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MGM's industry currently sports an average PEG of 1.07. Over the last 12 months, MGM's PEG has been as high as 1.97 and as low as 0.84, with a median of 1.52.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MGM has a P/S ratio of 0.76. This compares to its industry's average P/S of 1.17.
Finally, investors should note that MGM has a P/CF ratio of 7.53. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. MGM's current P/CF looks attractive when compared to its industry's average P/CF of 21.43. Within the past 12 months, MGM's P/CF has been as high as 8.95 and as low as 2.75, with a median of 4.92.
Value investors will likely look at more than just these metrics, but the above data helps show that MGM Resorts International is likely undervalued currently. And when considering the strength of its earnings outlook, MGM sticks out at as one of the market's strongest value stocks.
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Is MGM Resorts International (MGM) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is MGM Resorts International (MGM - Free Report) . MGM is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 13.63, while its industry has an average P/E of 26.46. MGM's Forward P/E has been as high as 23.60 and as low as 12.45, with a median of 16.86, all within the past year.
Investors should also note that MGM holds a PEG ratio of 0.87. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MGM's industry currently sports an average PEG of 1.07. Over the last 12 months, MGM's PEG has been as high as 1.97 and as low as 0.84, with a median of 1.52.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MGM has a P/S ratio of 0.76. This compares to its industry's average P/S of 1.17.
Finally, investors should note that MGM has a P/CF ratio of 7.53. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. MGM's current P/CF looks attractive when compared to its industry's average P/CF of 21.43. Within the past 12 months, MGM's P/CF has been as high as 8.95 and as low as 2.75, with a median of 4.92.
Value investors will likely look at more than just these metrics, but the above data helps show that MGM Resorts International is likely undervalued currently. And when considering the strength of its earnings outlook, MGM sticks out at as one of the market's strongest value stocks.