Las Vegas-based MGM Resorts International (MGM) owns and operates casino, hotel, and entertainment resorts in the United States and internationally. With a market cap of $9.7 billion, MGM Resorts operates through Las Vegas Strip Resorts, Regional Operations, and MGM China segments.

The resorts and hotels operator has notably underperformed the broader market over the past 52 weeks. MGM stock has observed 2.6% gains over the past 52 weeks and a marginal 92 bps uptick in 2025, lagging behind the S&P 500 Index’s ($SPX) 21.5% gains over the past year and 7.1% returns in 2025.

Narrowing the focus, MGM has also underperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 27.9% gains over the past year, but outpaced XLY’s 2.4% dip in 2025.

MGM stock prices dropped 3.8% in the trading session following the release of its Q2 results on Jul. 30 and have remained in the red since then. Driven by an increase in revenues from MGM China and Regional Operations segments, the company’s overall topline for the quarter inched up 1.8% year-over-year to $4.4 billion, exceeding Street expectations. However, Las Vegas Strip Resorts’ revenue has remained under pressure, falling 4.1% year-over-year to $2.1 billion. This has continued to unsettle investor confidence. Further, the recent downward revision of US jobs data has resurfaced the fears of recession, leading to a downturn in consumer discretionary stocks.

Meanwhile, MGM’s adjusted EPS has dropped 8.1% year-over-year to $0.79, but it managed to beat the consensus estimates by a notable margin.

For the full fiscal 2025, ending in December, analysts expect MGM to deliver an adjusted EPS of $2.37, down 8.5% year-over-year. The company has a mixed earnings surprise history. It has surpassed the Street’s bottom-line estimates thrice over the past four quarters, while exceeding the projections on one other occasion.

The stock has faced several downgrades recently. But still maintains a consensus “Moderate Buy” rating overall. Of the 19 analysts covering the MGM stock, opinions include 11 “Strong Buys,” seven “Holds,” and one “Strong Sell.”

This configuration is notably less optimistic than two months ago, when the stock had a consensus “Strong Buy” rating overall and 13 analysts gave “Strong Buy” recommendations.

On Jul. 22, Seaport analyst Vitaly Umansky downgraded MGM from a “Buy” to a “Hold,” citing concerns regarding the headwinds MGM is facing in the domestic market.

MGM’s mean price target of $47.23 suggests a 35.1% upside potential. Meanwhile, the Street-high target of $58 represents a staggering 65.9% premium to current price levels.