MGM Resorts International (MGM)’s Shares Rally After Rumor Of Potential Mirage Selloff

In the eyes of analysts, MGM Resorts International (NYSE:MGM) is a “Strong Buy”, with at least 13 analysts recommending the same. The market has a consensus short-term price target of $24.44 for the shares of the company, indicating an upside potential of 24% from its current share price.

Considering the positive hedge fund sentiment, the involvement of an activist invetsor, and the potential sale of the Mirage, we recommend investors watch for the release of the second quarter earnings and consider making a move afterwards. Adding the stock at its current weakness is a promising idea for investors looking for long-term value.

We don’t just track the latest moves of funds. We are, in fact, more interested in their 13F filings, which we use to determine the top 15 small-cap stocks held by the funds we track. We gather and share this information based on 16 years of research, with backtests for the period between 1999 and 2012 and forward testing for the last 2.5 years. The results of our analysis show that these 15 most popular small-cap picks have a great potential to outperform the market, beating the S&P 500 Total Return Index by nearly one percentage point per month in backtests. Moreover, since the beginning of forward testing in August 2012, the strategy worked brilliantly, outperforming the market every year and returning 123%, which is more than 66 percentage points higher than the returns of the S&P 500 ETF (SPY) (see more details).

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