Ken Fisher’s Top 10 Growth Stock Picks with 30+% Revenue Growth

5. MGM Resorts International (NYSE:MGM)

Number of Hedge Fund Investors  in Q1 2024: 39

3 Yr Revenue Growth: 46.3%

Fisher Investments’ Q1 2024 Stake: $209 million

MGM Resorts International (NYSE:MGM) is one of the biggest casino operators in the world. It has a presence in China, Atlantic City, Detroit, and other US cities. Like other casino companies, its presence in Macau can help MGM Resorts International (NYSE:MGM) significantly due to potential pent up demand being released due to earlier restrictions. At the same time troubles in Macau because of a slow Chinese economy and other restrictions can prove to be a headwind. One key initiative that MGM Resorts International (NYSE:MGM) has focused on heavily recently is its BetMGM online betting platform. The firm is targeting 40 US states with its online betting portfolio for much deeper penetration than its brick and mortar business. Additionally, MGM Resorts International (NYSE:MGM) is also eyeing additional physical opportunities, such as expanding its presence in the UAE, New York, and Texas. While these can expand its revenue profile, they could also create new cost pressures.

MGM Resorts International (NYSE:MGM)’s management commented on its expansion plans during the Q1 2024 earnings call where it shared:

“I think at least in terms of the market, I think UAE will come to fruition. I think there’s enough indicators there, enough work has been done to recognize that either Abu Dhabi of note, or one of the other Emirates will come to life. Obviously, Wynn has got a project in the ground and is waiting for national legislation and regulatory framework. So, I think that would be the most affirmative. Thailand is interesting. Obviously, it’s fully within the government’s control and hands at this point. The dialog to date has been encouraging. We will see. The cost to do business there, the margins that could be had would be compelling, very. But again, I don’t want to get ahead of that curve. And Texas is — if there is two or three states left in the US that are meaningful, it’s one of them.

And so, there’s four big cities that have been talked about there without giving strategy, everyone’s got positioning and eyes on one of them as do we. And so we continue to follow that. But I wouldn’t look for anything immediate there either frankly, particularly in terms of brick-and-mortar.”