5 Best Stocks for Beginners with Little Money

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In this article we will take a look at the 5 best stocks for beginners with little money. For a detailed analysis of these stocks, go directly to the 10 Best Stocks for Beginners with Little Money.

5. MGM Resorts International (NYSE: MGM)

Number of hedge fund holders: 44

MGM Resorts International (NYSE: MGM) is a Las Vegas-based hospitality and entertainment firm. The company runs resorts in Las Vegas, Massachusetts, Detroit, Mississippi, Maryland, and New Jersey. It also runs casinos and hotels in several different countries. The firm presently has 29 hotel and destination gaming offerings under its command. It was founded in 1986 and was formerly known as MGM MIRAGE. It is placed fifth on our list of 10 best stocks for beginners with little money. 

On April 22, leading investment bank Union Gaming gave MGM Resorts a high price target of $52, a 20% upside from the $45 assigned before, on the back of the sports betting potential for the casino operator. John DeCree, an analyst at the firm, said that the company had emerged as a market leader in sports betting and electronic gaming and would benefit from the reopening of resorts as the pandemic subsided. 

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Corvex Capital is a leading shareholder in the firm with 22.5 million shares worth more than $710 million.

In their Q1 2021 investor letter, Longleaf Partners Fund highlighted a few stocks and MGM Resorts International (NYSE:MGM) is one of them. Here is what the fund said:

“MGM (21%, 1.44%), the casino and online gaming company, also contributed to the Fund’s strong returns. MGM’s Las Vegas properties performed particularly well during the fourth quarter, with October marking the best month since pre-COVID February, positive quarterly EBITDA and strong 2021 bookings. MGM’s online gaming and sportsbetting app, BetMGM, is one of the leaders in US online gaming, with a better market share in the more profitable iGaming than in the higher profile but lower margin sports gaming. MGM has demonstrated high conversion rates of its hotel guests and we believe that, with Barry Diller’s help, they will build a competitive long-term advantage with lower customer acquisition costs. MGM’s Macau subsidiary, MGM China, also appreciated as the Macau market partially reopened. We believe there is significant additional upside for the Macau business over the medium-to-long term.”

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