Melco Resorts Entertainment Stock Buy Hold or Sell Recommendation
| MLCO Stock | USD 6.06 0.01 0.17% |
Given the investment horizon of 90 days and your below-average risk tolerance, our recommendation regarding Melco Resorts Entertainment is 'Strong Sell'. The recommendation algorithm takes into account all of Melco Resorts' available fundamental, technical, and predictive indicators you will find on this site.
Check out Melco Resorts Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Melco and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Melco Resorts Entertainment. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.
Melco |
Execute Melco Resorts Buy or Sell Advice
The Melco recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Melco Resorts Entertainment. Macroaxis does not own or have any residual interests in Melco Resorts Entertainment or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Melco Resorts' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Insignificant | Details | |
Volatility | Somewhat reliable | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Melco Resorts Trading Alerts and Improvement Suggestions
| Melco Resorts Entert had very high historical volatility over the last 90 days | |
| The company reported the previous year's revenue of 3.78 B. Net Loss for the year was (326.92 M) with profit before overhead, payroll, taxes, and interest of 246.54 M. | |
| Melco Resorts Entert has a poor financial position based on the latest SEC disclosures | |
| Latest headline from insidermonkey.com: Is Melco Resorts Entertainment The Most Undervalued Hotel Stock To Invest In Now |
Melco Resorts Returns Distribution Density
The distribution of Melco Resorts' historical returns is an attempt to chart the uncertainty of Melco Resorts' future price movements. The chart of the probability distribution of Melco Resorts daily returns describes the distribution of returns around its average expected value. We use Melco Resorts Entertainment price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Melco Resorts returns is essential to provide solid investment advice for Melco Resorts.
| Mean Return | 0.20 | Value At Risk | -5.54 | Potential Upside | 5.17 | Standard Deviation | 3.45 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Melco Resorts historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Melco Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument, such as Melco Resorts, soars without any apparent reason. This usually happens because many institutional investors are aggressively trading Melco Resorts Entertainment back and forth among themselves. Companies that invest excess capital in these types of assets may also be included in this term and can influence corporate governance by exercising voting rights in their investments.
| Shares | Owl Creek Asset Management Lp | 2024-06-30 | 3.8 M | Brightlight Capital Management Llc | 2024-09-30 | 3 M | Balyasny Asset Management Llc | 2024-06-30 | 2.5 M | Invenomic Capital Management, Lp | 2024-06-30 | 2.1 M | Ubs Group Ag | 2024-06-30 | 1.9 M | State Street Corp | 2024-06-30 | 1.9 M | New York State Common Retirement Fund | 2024-09-30 | 1.7 M | Healthcare Of Ontario Pension Plan Trust Fund | 2024-09-30 | 1.7 M | Solel Partners Lp | 2024-09-30 | 1.3 M | Arga Investment Management, Lp | 2024-09-30 | 29.2 M | Capital Research Global Investors | 2024-09-30 | 22 M |
Melco Resorts Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (593K) | (2.2M) | 16.1M | 4.2M | 20.2M | 21.2M | |
| Change In Cash | (88.1M) | 323.3M | (102.5M) | 335.1M | (552.6M) | (525.0M) | |
| Free Cash Flow | 386.2M | (1.3B) | (948.2M) | (1.2B) | 358.8M | 376.7M | |
| Depreciation | 651.2M | 618.5M | 579.8M | 521.9M | 520.7M | 400.2M | |
| Other Non Cash Items | 121.1M | 390.9M | 73.2M | 11.1M | 144.2M | 75.0M | |
| Capital Expenditures | 449.9M | 463.9M | 679.4M | 622.1M | 263.9M | 250.7M | |
| Net Income | 394.2M | (1.5B) | (956.5M) | (1.1B) | (326.9M) | (310.6M) | |
| End Period Cash Flow | 1.4B | 1.8B | 1.7B | 2.0B | 1.4B | 1.3B | |
| Change To Netincome | 35.4M | 157.3M | 242.3M | (16.8M) | (19.3M) | (18.4M) | |
| Investments | (1.0B) | 410.0M | (674.6M) | (806.1M) | (48.5M) | (50.9M) | |
| Net Borrowings | 503.0M | 341.0M | 1.3B | 913.0M | 1.0B | 1.1B | |
| Dividends Paid | 301.0M | 79.1M | 6.7M | 196K | (314K) | (298.3K) |
Melco Resorts Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Melco Resorts or Hotels, Restaurants & Leisure sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Melco Resorts' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Melco stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.11 | |
β | Beta against Dow Jones | 0.96 | |
σ | Overall volatility | 3.48 | |
Ir | Information ratio | 0.03 |
Melco Resorts Volatility Alert
Melco Resorts Entertainment currently demonstrates below-average downside deviation. It has Information Ratio of 0.03 and Jensen Alpha of 0.11. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Melco Resorts' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Melco Resorts' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Melco Resorts Fundamentals Vs Peers
Comparing Melco Resorts' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Melco Resorts' direct or indirect competition across all of the common fundamentals between Melco Resorts and the related equities. This way, we can detect undervalued stocks with similar characteristics as Melco Resorts or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Melco Resorts' fundamental indicators could also be used in its relative valuation, which is a method of valuing Melco Resorts by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Melco Resorts to competition |
| Fundamentals | Melco Resorts | Peer Average |
| Return On Equity | -21.57 | -0.31 |
| Return On Asset | 0.0375 | -0.14 |
| Profit Margin | (0.03) % | (1.27) % |
| Operating Margin | 0.12 % | (5.51) % |
| Current Valuation | 8.89 B | 16.62 B |
| Shares Outstanding | 419.71 M | 571.82 M |
| Shares Owned By Institutions | 39.16 % | 39.21 % |
| Number Of Shares Shorted | 7.77 M | 4.71 M |
| Price To Earning | 23.05 X | 28.72 X |
| Price To Book | 105.52 X | 9.51 X |
| Price To Sales | 0.56 X | 11.42 X |
| Revenue | 3.78 B | 9.43 B |
| Gross Profit | 246.54 M | 27.38 B |
| EBITDA | 815.96 M | 3.9 B |
| Net Income | (326.92 M) | 570.98 M |
| Cash And Equivalents | 1.52 B | 2.7 B |
| Cash Per Share | 3.42 X | 5.01 X |
| Total Debt | 7.77 B | 5.32 B |
| Current Ratio | 2.34 X | 2.16 X |
| Book Value Per Share | (3.09) X | 1.93 K |
| Cash Flow From Operations | 622.69 M | 971.22 M |
| Short Ratio | 2.71 X | 4.00 X |
| Earnings Per Share | (0.32) X | 3.12 X |
| Price To Earnings To Growth | 7.52 X | 4.89 X |
| Target Price | 9.5 | |
| Number Of Employees | 20.21 K | 18.84 K |
| Beta | 1.07 | -0.15 |
| Market Capitalization | 2.54 B | 19.03 B |
| Total Asset | 8.34 B | 29.47 B |
| Retained Earnings | (4.06 B) | 9.33 B |
| Working Capital | 440.67 M | 1.48 B |
| Current Asset | 1.02 B | 9.34 B |
| Current Liabilities | 657.17 M | 7.9 B |
Melco Resorts Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Melco . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Melco Resorts Buy or Sell Advice
When is the right time to buy or sell Melco Resorts Entertainment? Buying financial instruments such as Melco Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Melco Resorts in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Melco Resorts Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Melco Resorts. If investors know Melco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Melco Resorts listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 7.797 | Earnings Share (0.32) | Revenue Per Share 10.403 | Quarterly Revenue Growth 0.155 | Return On Assets 0.0375 |
The market value of Melco Resorts Entert is measured differently than its book value, which is the value of Melco that is recorded on the company's balance sheet. Investors also form their own opinion of Melco Resorts' value that differs from its market value or its book value, called intrinsic value, which is Melco Resorts' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Melco Resorts' market value can be influenced by many factors that don't directly affect Melco Resorts' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Melco Resorts' value and its price as these two are different measures arrived at by different means. Investors typically determine if Melco Resorts is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Melco Resorts' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.