5 Best Travel Stocks To Buy Right Now

3. MGM Resorts International (NYSE:MGM)

Number of Hedge Fund Holders: 53

MGM Resorts International (NYSE:MGM) is a Nevada-based company that owns and operates casino, hotel, and entertainment resorts in the United States and Macau. The company operates through three segments – Las Vegas Strip Resorts, Regional Operations, and MGM China. MGM Resorts International (NYSE:MGM) is one of the best travel stocks to monitor. 

On December 19, MGM Resorts International (NYSE:MGM) announced that MGM Grand Paradise has been awarded a new 10-year gaming concession contract. As part of the agreement, MGM China will invest approximately $2 billion over the next decade, nearly 50% of which is expected to be treated as capital expenditure and 50% as operating expense. About 90% of this budget will be spent on the development of international tourist markets, non-gaming projects, and programming to increase diversification in the region.

Truist analyst Barry Jonas on December 5 upgraded MGM Resorts International (NYSE:MGM) to Buy from Hold with a price target of $50, up from $40. The analyst said that he had historically been more cautious with bear-case macro risks related to the Strip and destination markets, but he also forecasts relative outperformance in 2023 on the back of the Strip’s solid event calendar and returning midweek business travel. 

According to Insider Monkey’s data, 53 hedge funds were bullish on MGM Resorts International (NYSE:MGM) at the end of September 2022, compared to 46 funds in the last quarter. Keith Meister’s Corvex Capital is the biggest stakeholder of the company, with 6.6 million shares worth $198.3 million. 

Baron Funds made the following comment about MGM Resorts International (NYSE:MGM) in its Q3 2022 investor letter:

“MGM Resorts International (NYSE:MGM) is a leading global casino and entertainment company with 29 unique hotels and casinos including some of the most recognizable resort brands such as Bellagio, MGM Grand, ARIA, and Park MGM. At its recent price of only $30 per share, we believe MGM’s valuation is compelling at only 6 times 2023 estimated cash flow.”

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