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: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
