12 Best S&P 500 Stocks to Invest in According to Analysts

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7. MGM Resorts International (NYSE:MGM)

Average Share Price Upside Potential as of January 31: 51.60%

Market Cap: $10.27 billion

MGM Resorts International (NYSE:MGM) is an American hospitality, sports, and entertainment company with a significant presence in domestic and international locations. Its segments include Las Vegas Strip Resorts, Regional Operations, and MGM China. The company’s properties offer hotels, casinos, meetings and conference spaces, dining, gaming, nightlife and other facilities.

Currently, MGM Resorts International (NYSE:MGM) is pursuing targeted expansion in Asia, particularly in Japan, where the Ministry of Land, Infrastructure, Transport, and Tourism in 2023 approved the company’s plans for a $10 billion casino resort project in Osaka, which is expected to transform the city into a premier gaming and entertainment destination. It is also exploring opportunities in other markets in the region, including the United Arab Emirates and Thailand.

MGM Resorts International (NYSE:MGM) is also capitalizing on the online sports betting and iGaming markets through BetMGM, its 50% joint venture with Entain. BetMGM had an impressive third quarter of fiscal 2024, during which it achieved profitability, record iGaming results, and a 70% increase in first-time depositors.

Moreover, MGM boasts a healthy return on equity in the high teens and generates substantial free cash flow, which allows the company to reinvest in its business, execute share repurchase programs, and enhance shareholder value. This has resulted in a general bullish sentiment around the stock.

Wall Street analysts have a consensus Strong Buy rating for MGM Resorts International (NYSE:MGM) with an average share price upside potential of nearly 52%, making it one of the best large-cap stocks to invest in according to analysts. Investor sentiment is seeing an improvement as well. According to Insider Monkey’s database for Q3 2024, 46 hedge funds held a stake in the company, up from 44 at the end of the second quarter.

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