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    MGM Resorts International (MGM) Missed Third Quarter Expectations, Is It 41% Undervalued?

    Simply Wall St·10/29/2026 02:08:12
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    MGM Resorts International (MGM) moved into focus after third quarter results showed a net loss and revenue below analyst expectations, even as management pointed to MGM China, digital operations, MGM Osaka, and a revised voting agreement.

    MGM Resorts International’s share price has come under pressure, with a 1-day share price return of 2.57% down, a 30-day move of 14.41% lower, and a 90-day decline of 40.28% that reflects investors resetting expectations after the latest quarter. Over a longer window, the stock’s year to date share price return of 25.27% down and 1-year total shareholder return of 12.62% lower point to fading momentum, as earnings disappointments and the withdrawn acquisition proposal weigh more heavily than the progress in MGM China, digital operations, and the MGM Osaka project.

    Spot reset expectations in MGM Resorts International, then scan a curated group of beaten-down opportunities in our 26 high quality undervalued stocks that also pair cash flow strength with solid balance sheets.

    MGM Resorts International now trades at a steep discount to both analyst targets and some fair value estimates after this reset. Is the market correctly pricing in the earnings hit, or is it leaning too far into caution as the valuation gaps widen?

    Most Popular Narrative: 41% Undervalued

    MGM Resorts International closed at $27.27, while the most followed narrative anchors fair value at $46.02 using a 12.54% discount rate. That gap puts the focus squarely on whether MGM can turn its resort and digital footprint into steadier cash flows than the recent headlines suggest.

    The Osaka integrated resort project, which is progressing on time and on budget with clearly outlined funding commitments through 2028, is expected to add a large new source of resort and gaming revenue once open and could diversify MGM Resorts International's earnings mix toward long term international cash flows.

    See why 19 investors see MGM Resorts International as 41% undervalued.

    Result: Fair Value of $46.02 (UNDERVALUED)

    Still, MGM Resorts International faces pressure from its sizeable US$30.02b debt load, along with ongoing legal and self insurance costs that could squeeze already thin profit margins.

    Find out about the key risks to this MGM Resorts International narrative.

    Next Steps

    The split between concern and optimism around MGM Resorts International is clear, and it puts the decision firmly in your hands. Move quickly, review both the risks and potential upsides, and ground your own stance in the 1 key reward and 2 important warning signs.

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