MGM Sees Solid Value in Metrics and Boeing’s Rough Year And 777x Update
MGM’s $15.5 billion market cap relative to 12-month revenue sitting at $6.6 billion, a (P/S) ratio of 2.3 is generated – slightly lower than the casino industry’s average of 3.6 but better than sports betting rivals such as DraftKings. With the casino industry slowly aiming to reopen when as the COVID vaccine continues to be distributed, MGM could be in a solid position.
MGM is also exploring opportunities in sports and online gaming leaving analysts at Morgan Stanley estimating that 12 new States could legalize these pastimes within 2021.
Boeing has had an extremely rough year amid the pandemic and limited traveling. As a result, record losses are being seen with sales plunging and issues getting the 737-max back into the air. For some hard numbers Boeing’ losses from operations climbed to $12.8 billion, up from nearly $2 billion a year ago, breaking the loss record. In total the company’s net loss soared to a whopping $11.9 billion.
On top of the past holding some baggage, the future seems to hold some as well. In fact, because Boeing recently announced they would be pushing back the delivery of their new jet, the 777X from 2022 to 2023, losses grew further. Some are seeing this as a potential entry for the long-term while others are wary of the potentially lengthy timeframe it takes for a true reversal to happen.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.