Are MGM Stock Investors Happy, Or Did They Miss Out?

• Relative to the S&P 500, MGM Resorts International has underperformed implicit the past 1, 3, and 5 years.

• MGM Resorts has capitalized connected the online sportsbook and casino legalization roar successful the U.S. and the rebound of the Macau gaming market.

• Despite lackluster performance, determination whitethorn inactive beryllium a way for shares to outperform successful the years ahead.

• 10 stocks we similar amended than MGM Resorts International ›

When it comes to casinos and gambling, the location ever wins, arsenic the saying goes. However, portion MGM Resorts International (NYSE: MGM) has remained profitable, semipermanent investors haven't precisely been "winning" by holding this stock.

Relative to the S&P 500, shares successful the company, champion known for its ownership of respective of the resorts dotting the Las Vegas Strip, person underperformed, and not lone implicit the past year. Over the past 3 years, and implicit the past 5 years, investors would've been amended disconnected holding an scale money tracking the S&P 500, alternatively than owning a nonstop presumption successful this stock.

Then again, portion this banal has underperformed implicit these assorted timeframes, that doesn't needfully mean it's a subpar concern going forward.

The illustration beneath compares MGM Resorts' one-, three-, and five-year show to the S&P 500:

MGM Resorts has not paid a dividend since 2022, truthful if you origin successful the effect of dividends reinvested into the S&P 500, the quality successful full instrumentality is adjacent much stark.

So, wherefore person MGM Resorts' shares underperformed truthful much? During 2020 and 2021, adjacent arsenic the pandemic affected the show of MGM's land-based casino properties successful Las Vegas and successful the Chinese possession of Macau, investors were engaged bidding up the stock. This is mostly owed to excitement surrounding BetMGM, the company's online casino and sportsbook associated task with Entain plc.

However, arsenic the marketplace realized that online gaming companies, portion increasing quickly, were years distant from profitability, excitement implicit specified stocks waned. MGM Resorts' banal terms show from 2022 onward has been much choppy, with shares trending adjacent little implicit the past year, owed to different contented astatine hand.

MGM Resorts' gross yet returned to pre-pandemic levels successful 2022, with the "revenge travel" trends helping to thrust further maturation successful 2023. In 2024, however, concerns astir the company's aboriginal prospects started to emerge.