NEW YORK - MGM Resorts International (NYSE:MGM) saw its shares climb by a significant 6.11% to close at $40.26 in Tuesday's upbeat trading session. The company's stock performance outshone its 50-day average trading volume, with 6 million shares changing hands, indicating a strong investor interest.
The positive momentum was not isolated to MGM Resorts, as the broader market also experienced substantial gains. The S&P 500 Index rose by 1.91%, while the Dow Jones Industrial Average increased by 1.43%, reflecting an overall favorable market sentiment.
Despite this rally, MGM Resorts' stock price has yet to reach its peak for the year. The current closing price stands $11.09 short of the 52-week high of $51.35 set on July 31st.
The hospitality and entertainment sector as a whole reflected this optimistic trend, with rival companies also posting gains in their stock prices. Las Vegas Sands Corp. (NYSE:NYSE:LVS) saw an increase of 3.91%, DraftKings Inc. (NASDAQ:DKNG) went up by 4.08%, and Caesars (NASDAQ:CZR) Entertainment Inc. (NASDAQ:CZR) led the pack with a substantial 8.20% rise in their share value.
Investors in these companies appeared encouraged by the day's developments, as the industry continues to navigate through various market conditions while striving for growth and stability in their respective businesses.
InvestingPro Insights
In light of recent developments, it's worth noting some key insights from InvestingPro. MGM Resorts International, with a market cap of $13.75B, has been experiencing a strong earnings period which should allow management to continue dividend payments, an InvestingPro Tip that may interest investors. Additionally, the company's management has been aggressively buying back shares, indicative of their confidence in the company's future performance.
From a data perspective, MGM's P/E ratio stands at 13.51 as of Q3 2023, while the adjusted P/E ratio is slightly lower at 12.31. The company's revenue growth in the last twelve months as of Q3 2023 was 22.17%, showing a positive trend in the company's top-line performance. Furthermore, MGM's gross profit margin in the same period was 47.93%, highlighting the company's ability to effectively manage its costs.
With these InvestingPro Tips and data, investors can make more informed decisions. For more insightful tips and real-time data, consider exploring the InvestingPro product, which offers additional tips tailored to individual investor needs.
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