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MGM Resorts (MGM) Receives Approval to Build Resort in Japan

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MGM Resorts International (MGM - Free Report) has received a green signal from Japan's Ministry of Land, Infrastructure, Transport and Tourism for developing a resort in Osaka. MGM Japan and its joint-venture partner ORIX will develop an approximately $10 billion integrated resort.

The company aims to transform the region into a world-class entertainment and hospitality destination, which will attract tourism in Japan. The resort, which is expected to open in 2029, will attract nearly 20 million visitors annually.

MGM Resorts CEO & president Bill Hornbuckle said, “We couldn't be more excited to get started on the development of one of Japan's first Integrated Resorts in the great City of Osaka, and we look forward to working with our partner ORIX and Osaka Prefecture/City to realize this long-held goal.”

The company emphasizes international expansion to drive growth. To this end, MGM Resorts made progress related to development plans in Japan and Dubai. It stated plans to expand its footprint in New York. However, it is subject to regulatory approvals. It also highlighted the completion of the LeoVegas acquisition. The initiative supported MGM’s expansion in international markets and online gaming, and paved a path to drive its omnichannel strategy. It generates incremental earnings between brick-and-mortar and online channels.

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Price Performance

Shares of the Zacks Rank #3 (Hold) company have gained 33.7% in the past six months compared with the industry’s increase of 31%.

MGM Resorts, one of the leading companies in the gaming and lodging industry, is well poised to grow on high brand awareness. Superior business model, extensive non-gaming revenue opportunities, high-quality assets and attractive property locations are its primary growth drivers.

In the past few years, it has taken various initiatives to align every recognized brand into one global entertainment brand. This resulted in a disciplined business model with a unified view of strategy.

Key Picks

Here we present some better-ranked stocks that investors may consider in the Zacks Consumer Discretionary sector.

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The Zacks Consensus Estimate for WYNN’s 2023 sales and EPS suggests growth of 43.3% and 118.8%, respectively, from the year-ago levels.

Ralph Lauren Corporation (RL - Free Report) , presently carrying a Zacks Rank #2, has a trailing four-quarter earnings surprise of 23.6%, on average. Its shares have improved 27.1% in the past six months.

The Zacks Consensus Estimate for RL’s fiscal 2024 sales and EPS suggests growth of 5.5% and 14%, respectively, from the year-ago levels.

InterContinental Hotels Group PLC (IHG - Free Report) carries a Zacks Rank #2, at present. Shares of IHG have gained 31.4% in the past six months. The long-term earnings growth rate of the company is 13.6%.

The Zacks Consensus Estimate for IHG’s 2023 sales and EPS suggests growth of 9.8% and 18.4%, respectively, from the year-ago period’s reported levels.

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