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Is MGM Resorts International (MGM) Stock Undervalued Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is MGM Resorts International (MGM - Free Report) . MGM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 16.76. This compares to its industry's average Forward P/E of 32.34. Over the last 12 months, MGM's Forward P/E has been as high as 118.60 and as low as 12.45, with a median of 18.30.
Investors will also notice that MGM has a PEG ratio of 1.40. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MGM's industry currently sports an average PEG of 2. Over the last 12 months, MGM's PEG has been as high as 1.61 and as low as 1.40, with a median of 1.58.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MGM has a P/S ratio of 0.84. This compares to its industry's average P/S of 1.02.
These are just a handful of the figures considered in MGM Resorts International's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MGM is an impressive value stock right now.
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Is MGM Resorts International (MGM) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is MGM Resorts International (MGM - Free Report) . MGM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 16.76. This compares to its industry's average Forward P/E of 32.34. Over the last 12 months, MGM's Forward P/E has been as high as 118.60 and as low as 12.45, with a median of 18.30.
Investors will also notice that MGM has a PEG ratio of 1.40. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MGM's industry currently sports an average PEG of 2. Over the last 12 months, MGM's PEG has been as high as 1.61 and as low as 1.40, with a median of 1.58.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MGM has a P/S ratio of 0.84. This compares to its industry's average P/S of 1.02.
These are just a handful of the figures considered in MGM Resorts International's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MGM is an impressive value stock right now.