Score 8.3 (out of 10): MGM RESORTS sets up for +11.4% rally in 2 months

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What’s Going On Here?

MGM Resorts is expected to release earnings after the market on Feb 9. In the last reported quarter, the company delivered an earnings surprise of +175%. Estimates are for 2 cents per share, a large improvement from a 90 cents reported loss in the quarter a year ago.

Why Now?

MGM RESORTS INTERNATIONAL has reached a new shorter-term high. Previously, during similar occasions, MGM RESORTS INTERNATIONAL shares had a median return of +11.4%, over the following 2 months – based on 10 historical occasions with 9 of those showing positive returns (90% hit ratio). This buy signal for MGM RESORTS INTERNATIONAL received a high score of 8.3 (out of 10). This insight was generated on 2022-February-7 with last price of 45.61.

What’s This Company About?

MGM RESORTS INTERNATIONAL is in the Casino Hotels business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth +24% (average). Ticker symbol: MGM US.

What’s My Risk / Reward and Time Horizon?

We found 2 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 50.83 (+11.4%) has been reached. Based on MGM RESORTS INTERNATIONAL’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 43.11 (last price at 45.61), which is equivalent to a -5.5% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

-6.8% (November-2021), 20% (August-2021), 2.6% (April-2021), 17% (January-2021), 31.6% (October-2020), 16.5% (August-2020), 29.3% (April-2020), 3.4% (December-2019), 6.4% (September-2019), 5.2% (June-2019).

Historical Chart:

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Summary:

NameMGM Resorts
ViewUp
Star (1 to 10)8.3
Target+11.4%
Time2 months
Hit Rate90%

Popular Insights:

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