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Is MGM Resorts International (MGM) a Great Value Stock Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is MGM Resorts International (MGM - Free Report) . MGM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Another notable valuation metric for MGM is its P/B ratio of 3.06. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 9.01. Over the past 12 months, MGM's P/B has been as high as 3.38 and as low as 1.17, with a median of 2.28.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MGM has a P/S ratio of 1.12. This compares to its industry's average P/S of 1.42.
Another great Gaming stock you could consider is PENN Entertainment, Inc. (PENN - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of PENN Entertainment, Inc. currently holds a Forward P/E ratio of 16.98, and its PEG ratio is 0.93. In comparison, its industry sports average P/E and PEG ratios of 52.67 and 2.51.
PENN's Forward P/E has been as high as 23.33 and as low as 13.70, with a median of 18.77. During the same time period, its PEG ratio has been as high as 19.28, as low as 0.93, with a median of 1.41.
PENN Entertainment, Inc. sports a P/B ratio of 1.11 as well; this compares to its industry's price-to-book ratio of 9.01. In the past 52 weeks, PENN's P/B has been as high as 1.64, as low as 1.11, with a median of 1.35.
These figures are just a handful of the metrics value investors tend to look at, but they help show that MGM Resorts International and PENN Entertainment, Inc. are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MGM and PENN feels like a great value stock at the moment.
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Is MGM Resorts International (MGM) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is MGM Resorts International (MGM - Free Report) . MGM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Another notable valuation metric for MGM is its P/B ratio of 3.06. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 9.01. Over the past 12 months, MGM's P/B has been as high as 3.38 and as low as 1.17, with a median of 2.28.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MGM has a P/S ratio of 1.12. This compares to its industry's average P/S of 1.42.
Another great Gaming stock you could consider is PENN Entertainment, Inc. (PENN - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of PENN Entertainment, Inc. currently holds a Forward P/E ratio of 16.98, and its PEG ratio is 0.93. In comparison, its industry sports average P/E and PEG ratios of 52.67 and 2.51.
PENN's Forward P/E has been as high as 23.33 and as low as 13.70, with a median of 18.77. During the same time period, its PEG ratio has been as high as 19.28, as low as 0.93, with a median of 1.41.
PENN Entertainment, Inc. sports a P/B ratio of 1.11 as well; this compares to its industry's price-to-book ratio of 9.01. In the past 52 weeks, PENN's P/B has been as high as 1.64, as low as 1.11, with a median of 1.35.
These figures are just a handful of the metrics value investors tend to look at, but they help show that MGM Resorts International and PENN Entertainment, Inc. are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MGM and PENN feels like a great value stock at the moment.