We recently compiled a list of the 10 Best Seasonal Stocks To Buy According to Hedge Funds. In this article, we are going to take a look at where MGM Resorts International (NYSE:MGM) stands against the other seasonal stocks.
Seasonal patterns in the stock market refer to recurring trends that occur at specific times of the year. These patterns can influence investment strategies, as certain sectors or stocks tend to perform better during particular periods. Understanding these seasonal trends can aid investors in making informed decisions. One well-known seasonal phenomenon is the January Effect, which suggests that stock prices, particularly those of small-cap companies, tend to rise in January more than in any other month. This pattern has been observed historically, though its impact can vary from year to year. Different sectors exhibit unique seasonal trends. For instance, the technology sector often experiences strength in the fourth quarter, coinciding with increased consumer spending during the holiday season. Conversely, the energy sector may see heightened activity during the summer months due to increased travel and energy consumption.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Historically, certain months have demonstrated consistent performance trends. For example, September has been the most challenging month for stock performance, with the S&P 500 Index averaging a return of negative 0.7% since 1950. The index has finished September on the positive side less than half of the time, underscoring the volatile terrain that investors have historically traversed during this month. As of early February 2025, the market sentiment in the US has been dampened by ongoing concerns regarding tariffs with major US trading partners. Recent announcements indicate that existing tariffs may remain in place for an extended period, adding to market instability. Additionally, China has imposed tariffs on various US products and initiated an antitrust investigation into Google, with potential similar actions against Apple’s App Store.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
The stocks mentioned below in the list are the companies that tend to perform better at a certain time in a year. They are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Aerial shot of an entertainment resort, its buildings and gaming amenities sprawling along the seafront.
MGM Resorts International (NYSE:MGM)
Number of Hedge Fund Holders: 46
MGM Resorts International (NYSE:MGM) is a hospitality and entertainment firm that runs several destination resorts. On January 17, MGM Grand Hotel & Casino revealed plans for a $300 million remodel, updating all 4,212 rooms and suites in its main tower. The transformation, which is slated for completion in December 2025, is set to enhance the overall guest experience with modern, sophisticated design elements inspired by the flair of the disco era. The remodeled rooms will be part of MGM Grand’s refreshed experience, alongside new dining and entertainment options set to launch later this year. In the earnings of the third quarter of 2024, the company reported a net income of $185 million compared to $161 million in the prior year’s quarter, reflecting strong financial performance and potential for higher shareholder returns.
Overall MGM ranks 4th on our list of the best seasonal stocks to buy according to hedge funds. While we acknowledge the potential of MGM as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than MGM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
