In this article, we discuss the 5 best seasonal stocks to buy now. If you want to read our detailed analysis of the seasonal stocks, go directly to the 15 Best Seasonal Stocks to Buy Now.
5. MGM Resorts International (NYSE:MGM)
Number of Hedge Fund Holders: 59
MGM Resorts International (NYSE:MGM) ranks fifth on our list of the best seasonal stocks to buy now. It is an American hospitality and entertainment company that is widely known for its resorts. The company’s resorts and unique hotels are famous among tourists and locals during the holiday season.
Recently, Wells Fargo initiated its coverage on MGM Resorts International (NYSE:MGM) with an ‘Overweight’ rating and a $55 price target. The firm states that the company is well-positioned to benefit from the Las Vegas strip and its sports betting and iGaming platform, BetMGM, which is one of the biggest sports betting platforms in the U.S. In Q2 2021, MGM Resorts International (NYSE:MGM) posted an EPS of -$0.13, beating the estimates by $0.24. The company reported revenue of $2.27 billion, up 683.3% from the prior-year quarter. Since the beginning of the year, MGM Resorts International (NYSE:MGM) delivered a 39.8% return to shareholders, while the stock gained 96.9% in the past year.
Of the 873 hedge funds tracked by Insider Monkey, 59 hedge funds have positions in MGM Resorts International (NYSE:MGM) in Q2 2021, worth $2.88 billion. This number of hedge funds having stakes in the company grew from 57 in the previous quarter.
Longleaf Partners Fund released its Q2 2021 investor letter and mentioned MGM Resorts International (NYSE:MGM) in it. Here is what the firm has to say:
“MGM (12%, 0.59%), the casino and online gaming company, was a top contributor as it reported a solid first quarter with Vegas EBITDAR (earnings before interest, taxes, depreciation, amortization and restructuring or rent costs) doubling sequentially and Regional EBITDAR actually growing strongly YOY due to exceptional cost control. The second quarter saw clear signs of even more growth with a strong rebound in travel to the company’s US properties. MGM also continued to de-risk its value and balance sheet by selling over $1 billion of fully valued shares of its real estate subsidiary MGM Growth Properties in the quarter. On the first day of July, the company announced a transaction to consolidate and sell the real estate of its CityCenter project at a price that was accretive to our value per share.”