MGM Resorts International Stock: 7 Straight Red Days, Down 22%
Shares of MGM Resorts International (MGM) have closed lower in each of the last 7 sessions, a cumulative decline of 21.7%. That erased about $2.1 billion from the company’s market value, which now stands at about $7.7 billion. The stock closed at $30.47 on Thursday, October 1, its lowest close of the past year.
How The Streak Stacks Up Against The S&P 500
Returns for MGM and the S&P 500 over the streak and the periods around it, all ending Thursday, October 1 and including dividends:
| Return Period | MGM | S&P 500 |
|---|---|---|
| 1 Day | -1.9% | 0.2% |
| 7 Days (Current Streak) | -21.7% | -1.2% |
| 1 Month (21 Trading Days) | -25.3% | 0.6% |
| 3 Months (63 Trading Days) | -35.3% | 2.7% |
| Year To Date | -16.5% | 13.0% |
| 1 Year (252 Trading Days) | -12.1% | 16.0% |
A Stock-Specific Slide, Or A Market Move?
The market explains little of this: the S&P 500 lost 1.2% over the same 7 sessions, including dividends, against MGM Resorts International’s -21.7%. 7 other S&P 500 stocks are currently on losing streaks of 7 days or longer. Over the past three months the stock is down 35.3%, a window that includes the streak; over the other 56 sessions of that window it was down 17.4%.
Do The Fundamentals Justify The Selling?
On the fundamentals, revenue grew 3.2% over the last twelve months, against a median of 7.3% for S&P 500 Consumer Discretionary stocks; and its operating margin is 6.5%, versus a median of 15.4%. At least one of the last four quarters was a loss, so a price-to-earnings multiple would not be a meaningful yardstick here. The read is mixed.
A slide like this raises an obvious follow-up: which marked-down stocks are actually worth buying? Our Buy the Dip screen runs that test every day, flagging beaten-down names whose fundamentals still hold up.
Falling Prices Test Conviction. Rules Do Not Flinch
A losing streak forces a choice on every holder: sell into weakness, average down, or freeze. All three are emotional answers to what should be an analytical question, and decisions made that way tend to be expensive ones.
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