MGM Resorts International and other casino stocks rallied Monday after the company's BetMGM venture raised its guidance.
Positive momentum in the first quarter is carrying over to the current quarter, a statement from the sports betting and online gaming provider said. Trends are consistent with the 34% year-over-year revenue growth seen in Q1, it added.
Citing "increased confidence in its performance for 2025," BetMGM now expects full-year net revenue of at least $2.6 billion. In February, it had forecast a range of $2.4 billion to $2.5 billion. This year's EBITDA is now expected to be at least $100 million.
MGM Resorts reported in its 10-K filing a loss of $110 million last year from BetMGM but expects the venture to become profitable this year.
"Its strengthened business, revised strategic approach, and performance momentum, further reinforce its confidence in future growth prospects and pathway to $500 million EBITDA in the coming years," BetMGM said in a statement.
Sports Betting Play
BetMGM, a partnership of MGM Resorts International and Britain's Entain Plc, has exclusive access to all of MGM Resorts' U.S. land-based and online sports betting, plus tournament poker and online gaming businesses.
Shares of MGM Resorts climbed 6.5% Monday morning. The stock is down about 3% year to date, trading above its 50-day moving average but below the 200-day line.
MGM stock has a 21-day average true range (ATR) ratio of 3.03%. The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks with a high ATR tend to make large price moves that can trigger sell rules. Stocks with lower ATRs tend to make more incremental moves.
With the S&P 500 and Nasdaq now in a power trend, investors can buy stocks with ATRs up to 8%, though they should be wary of being too concentrated in high-octane names.
Casino And Sports Betting Stocks
IBD's gaming industry group climbed more than 2% Monday morning, among the 12 best performing groups on the day. The group ranks a mediocre No. 119 out of 197, however.
Among notable stocks, Sportradar is forming a cup base and is near the 25.85 buy point, and close to an early entry at 24.69. The company analyzes and provides sports data for bookmakers, leagues and media companies. It has a Composite Rating of 85.
Boyd Gaming, which operates 28 casinos in 10 states, shows a buy point at 76.16 and is trading 2% below it. Boyd, which also has a 5% stake in sports betting platform FanDuel, has an 84 Composite Rating.
Among top casinos, MGM peers Wynn Resorts and Las Vegas Sands each rallied more than 5%. Wynn is rebounding off its 50-day moving average and retaking support at its 200-day moving average. Las Vegas Sands is trading along short-term support, and still 5% below its 200-day level.
