Q3 Earnings Expectations Boost MGM Stock Ahead of Wynn Resorts, Caesars Entertainment, Las Vegas Sands Despite September Slide

Hospitality and gaming behemoth MGM Resorts International MGM will be reporting its third-quarter earnings on Nov. 8 after market hours.

MGM stock is still recovering from its September slide caused by the Scattered Spider cyberattack, which had infiltrated MGM's systems. It created significant operational and gaming system outages.

For the year, MGM stock performance is ahead of the competition at +14.99%; Wynn Resorts WYNN is +8.84%, Caesars Entertainment CZR is +3.27% and Las Vegas Sands LVS -2.09%.

As the company reports Q3 earnings, here's what analysts will be focusing on, and how the stock currently maps against Wall Street estimates.

Business & Fundamentals: MGM’s diversified revenue segments award it the strength to sail through an economic downturn. The company’s revenue is spread across properties & tourism (Las Vegas strip, some regional venues in the U.S. and MGM Macau) and gaming and sports betting (BetMGM and LeoVegas).

The company is the highest revenue generator among peers such as Wynn Resorts, Caesars Entertainment and Las Vegas Sands. The stock currently trades at a P/E multiple of 16.89 compared to WYNN at 29.22, CZR at 10.59 and LVS at 25.43.

In the gaming space, it competes with FanDuel and DraftKings DKNG.

Related: BetMGM and Inspired Entertainment Launch MGM Bonus City, Revolutionary Hybrid Dealer® Game

Q3 Analysts' Focus: As MGM released its Q3 report, analysts would be focused on assessing the financial impact of the cyberattack on the business. The company’s rising high-margin revenue from its sports betting platform BetMGM would also be in the spotlight.

Ratings & Consensus Estimates: Analyst ratings over the past month rate the stock a Buy. Meredith Jensen of HSBC initiated coverage with a target price of $49. Truist Securities’ Barry Jonas sees the stock reaching $55. Stephen Grambling of Morgan Stanley has a target of $42.

MGM Price Action: MGM stock is down over 10% since the cyberattack incident. Over the past one month, however, the stock has recovered about 6.75%. It traded at $38.27 at market close on Nov.7.

The upcoming culinary union strike remains an overhang on the stock.

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