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MGM Resorts International (MGM): Today's Featured Services Straggler

Tickers in this article: MGM

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model .

MGM Resorts International ( MGM) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 0.2%. By the end of trading, MGM Resorts International fell 34 cents (-2.6%) to $12.48 on average volume. Throughout the day, 13.2 million shares of MGM Resorts International exchanged hands as compared to its average daily volume of 11.5 million shares. The stock ranged in price between $12.36-$12.96 after having opened the day at $12.90 as compared to the previous trading day's close of $12.82. Other companies within the Services sector that declined today were: Excel Maritime Carriers ( EXM), down 11.8%, Nordic American Tankers ( NAT), down 10.7%, China Auto Logistics ( CALI), down 10.3%, and Pizza Inn Holdings ( PZZI), down 9.8%.

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MGM Resorts International, through its wholly owned subsidiaries, owns and/or operates casino resorts. The company operates in two segments, Wholly Owned Domestic Resorts and MGM China. Its resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. MGM Resorts International has a market cap of $6.43 billion and is part of the leisure industry. Shares are up 10.1% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate MGM Resorts International a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates MGM Resorts International as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself.

On the positive front, Mecox Lane ( MCOX), up 16.2%, Sport Chalet ( SPCHB), up 13.4%, Planet Payment ( PLPM), up 10.3%, and Charm Communications ( CHRM), up 10.2%, were all gainers within the services sector with Lowe's Companies ( LOW) being today's featured services sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).