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MGM Resorts International (MGM), headquartered in Las Vegas, Nevada, owns and operates casino, hotel, and entertainment resorts. Valued at $11.2 billion by market cap, the company offers accommodation, dining, meeting, convention, and hospitality management services for casino and non-casino properties.
Shares of this global hospitality and entertainment giant have outperformed the broader market over the past year. MGM has gained 28.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.2%. In 2026, MGM stock is up 25.3%, surpassing the SPX’s 13% rise on a YTD basis.
Zooming in further, MGM’s outperformance looks more pronounced compared to the Invesco Leisure and Entertainment ETF (PEJ). The exchange-traded fund has gained about 16.9% over the past year. Moreover, the stock’s double-digit returns on a YTD basis outshine the ETF’s 9.6% gains over the same time frame.
MGM beat expectations with modest revenue growth and improved margins, driven by strong Las Vegas conventions, new all-inclusive packages, and luxury upgrades. Regional properties posted record revenue, while China recovered quickly post-World Cup. Moreover, digital grew about 20% year over year with LeoVegas, and BetMGM nearing profitability and funding expansion into Brazil.
On Jul. 29, MGM shares closed down marginally after reporting its Q2 results. Its adjusted EPS of $0.59 missed Wall Street expectations of $0.63. The company’s revenue was $4.5 billion, topping Wall Street forecasts of $4.4 billion.
For the current fiscal year, ending in December, analysts expect MGM’s EPS to decline 38.1% to $2.05 on a diluted basis. The company’s earnings surprise history is disappointing. It missed the consensus estimate in three of the last four quarters while surpassing the forecast on another occasion.
Among the 22 analysts covering MGM stock, the consensus is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, 11 “Holds,” and two “Strong Sells.”
This configuration is less bearish than a month ago, with three analysts suggesting a “Strong Sell.”
On Jul. 30, JPMorgan Chase & Co. (JPM) analyst Daniel Politzer maintained a “Buy” rating on MGM and set a price target of $53, implying a potential upside of 15.9% from current levels.
The mean price target of $50.37 represents a 10.2% premium to MGM’s current price levels. The Street-high price target of $60 suggests a notable upside potential of 31.2%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
