MGM Resort International (mgm extension – Free Report) and Entain Plc’s joint venture BetMGM recently announced the launch of its mobile app in Maryland. The app will allow customers to access different online betting options.
BetMGM CEO Adam Greenblatt said, “The convenience of our best-in-class mobile app ties directly into the immersive atmosphere we’ve created at our retail sports betting at MGM National Harbor and Nationals Park.”
BetMGM’s expansion efforts continue to drive growth. BetMGM’s net revenues in the first half of 2022 were $608 million, up 70% from 2021 levels. Meanwhile, BetMGM continues to gain market share. In the second quarter of 2022, BetMGM launched its offers in Ontario. As of May 2022, BetMGM has achieved a 21% market share in the US sports betting and iGaming space.
BetMGM has a long-term growth target of 20-25% in US sports betting and iGaming. Currently, the company is well on its way to achieving its goal. Given the positive momentum in the markets coupled with its outstanding online and offline offerings, the company expects revenues exceeding $1.3 billion in 2022.
BetMGM expects to achieve positive EBITDA in 2023. To drive growth, the firm continues to invest in other markets.
The company announced partnerships with Gila River Hotels & Casinos and the Arizona Cardinals to expand its retail and online sports betting. Additionally, the company has partnered with Orix to build a world-class integrated resort in Japan.
Image source: Zacks Investment Research
Shares of MGM Resorts gained 11.8% over the past six months, compared with the industry’s rise of 11.3%. The company is benefiting from pent-up consumer demand, high domestic casino spending and strong demand for sports betting. It is also benefiting from increased visits to the Las Vegas market. Sports betting and iGaming continue to be key growth drivers for the company.
Zacks ranking and key picks
The company currently has a Zacks Rank #5 (Strong Sell).
you can see the complete list of today’s Zacks #1 Rank (Strong Buy) stock here.
Some better-ranked stocks in the consumer discretionary sector are Hyatt hotel company (h – free report), Croc, Inc. (CROSS – Free report) e Boyd Game Company (BYD – free report).
Hyatt currently holds a Zacks Rank #2 (Buy). H has a four-quarter earnings surprise of 652.3% on average. The stock has improved 16.1% over the past year.
Zacks’ consensus estimate for H’s current financial year sales and EPS indicates an increase of 92.6% and 121.8%, respectively, over the levels reported in the prior year period.
Crocs currently holds a Zacks Rank #2. CROX has a long-term earnings growth rate of 15%. Crocs shares are down 43.7% over the past year.
Zacks’ consensus estimate for CROX’s 2022 sales and EPS indicates an increase of 51.5% and 23.7%, respectively, over year-ago year-ago levels.
Boyd Gaming currently has a Zacks Rank #2. BYD has a long-term earnings growth rate of 12.8%. The stock is down 3.4% over the past year.
Zacks’ consensus estimate for BYD’s 2022 sales and EPS indicates growth of 4.4% and 11.9%, respectively, over the levels reported in the prior year period.