MGM Resorts
Resort and casino operator MGM Resorts International (NYSE: MGM) has seen its share price increase by about 55% over the past 12 months. More than half of the share price gain has been posted this year. The boom times have slowed, however, as a new outbreak of COVID-19 in China was expected to hit a peak of 65 million per week by the end of June. Whether that was really the peak or if the disease is still spreading will have a lot to do with MGM’s outlook.
Sentiment remains mostly bullish on the stock, with 11 of 18 analysts having a Buy or Strong Buy rating and the rest rating it at Hold. At a share price of around $50.80, the upside potential based on a median price target of $58.00 is 14.2%. At the high price target of $64.00, the upside potential is 26%.
The consensus second-quarter revenue estimate is $3.8 billion, down 1.9% sequentially but 16.6% higher year over year. MGM is forecast to post EPS of $0.52, up 17.7% sequentially and compared to EPS of $0.03 in the year-ago quarter. For the full year, analysts expect EPS of $2.33, much better than last year’s loss per share of $2.74, on sales of $15.44 billion, up 17.6%.
MGM shares trade at 21.8 times estimated 2023 earnings, 19.4 times estimated 2024 earnings of $2.62 and 17.8 times estimated 2025 earnings of $2.85 per share. The 52-week trading range is $26.20 to $51.35. MGM pays an annual dividend of $0.01 (yield of 0.02%), and the total shareholder return for the past year was 55.14%.
Occidental Petroleum
Low prices have taken their toll on Occidental Petroleum Corp. (NYSE: OXY), just as they have on other oil and gas producers. In the first quarter of 2023, the company reported EPS that was down 48% year over year. Warren Buffett increased Berkshire Hathaway’s stake in Oxy to almost 25%. WTI crude oil traded down by about 13% for the past 12 months, while Oxy’s stock traded down by about 4% for the same period.
Of 26 brokerages covering the stock, 15 rate it at Hold and 10 have a Buy or Strong Buy rating. At a share price of around $63.00, the implied gain based on a median price target of $66.00 is 4.8%. At the high price target of $81.00, the upside potential is 28.6%.
Second-quarter revenue is forecast at $6.74 billion, down 7.2% sequentially and by 37.2% year over year. Adjusted EPS are pegged at $0.76, down 29.9% sequentially and by 75.9% year over year. For the full 2023 fiscal year, analysts expect to see EPS of $4.07, down 56.5%, on revenue of $28.04 billion, down 24.4%.
Occidental stock trades at 15.5 times expected 2023 EPS, 13.1 times estimated 2024 earnings of $4.83 and 13.9 times estimated 2025 earnings of $4.54 per share. The 52-week range is $55.51 to $77.13. Occidental pays an annual dividend of $0.72 (yield of 1.16%). Total shareholder return for the past year was negative 3.73%.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
