Cheap Valuable Stocks You Can Buy - MGM Resorts

1. MGM Resorts

The North American online gambling market is starting to move. MGM Resorts is an excellent company that can be traded at minimal prices. The S&P 500 trades at an average price to earnings ratio of almost 40, making this index an expensive place for some investors. But the good news is that some companies are still rebelling against this trend.

Does MGM Resorts (NYSE: MGM) deserve investment with its inexpensive valuation and exciting new growth factors?

 

1. MGM Resorts

The North American online gambling market is warming up and MGM Resorts is a great way to bet on this trend. The casino operator's transition to sports betting is going as planned, and its relatively low valuation helps set it apart from its high-flying competitors in the industry. Morgan Stanley analysts expect 12 new US states to legalize sports betting and online gambling in 2021.

Canada, north of the border, approved Bill C-218, which helps pave the way for the legalization of sports betting.

However, for the bill to take effect, it must enter a final hearing with the Justice Committee. MGM management expects the combined sports betting and online gambling market to be worth $ 20.3 billion by 2025, with estimated market shares between 15 and 20 percent. The BetMGM platform has performed as expected so far, achieving 17 percent market share in the states where it is active. MGM is a suitable alternative to high flying competitors due to its low valuation. The company's core casino operations are not profitable due to the current situation. Price/earnings ratio is not a useful measure considering the unusual circumstances.   Cheap Valuable Stocks You Can Buy - MGM Resorts Source: https://www.fool.com/ You may also be interested in:

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