{"id":312356,"date":"2024-02-28T15:31:19","date_gmt":"2024-02-28T21:31:19","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=312356"},"modified":"2024-02-29T11:23:43","modified_gmt":"2024-02-29T17:23:43","slug":"melco-one-of-best-sub-10-stocks-says-morningstar","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/melco-one-of-best-sub-10-stocks-says-morningstar\/","title":{"rendered":"Melco Resorts One of 10 Best Stocks Under $10, Says Morningstar"},"content":{"rendered":"

For less than the price of a Big Mac in some parts of the U.S., an investor can acquire two shares of Melco Resorts & Entertainment (NASDAQ: MLCO). That’s to say, by price tag, the casino operator is cheap.<\/p>\n

\"Philippine
Melco Resorts City of Dreams in Manila. The stock was rated one of the 10 best under $10. (Image: Melco Resorts)<\/figcaption><\/figure>\n

So cheap that it resides below $10, earning it a place on Morningstar\u2019s recently revealed list of the 10 best stocks trading under $10. As of this writing, Lawrence Ho\u2019s gaming company trades around $8.30, or less than some folks\u2019 daily Starbucks tab.<\/p>\n

\n

That low price is the result of a 33.3% tumble over the past year — one that forced Ho off Forbes<\/em>\u2019 rankings<\/a> of the richest people. Don\u2019t cry for the Melco chief executive officer, however, because he\u2019s still a billionaire. Still, Ho and other Melco investors have suffered for a while now. In mid-April 2021, the stock traded around $20 before tumbling to $4.85 on July 15, 2022.<\/p>\n<\/div>\n

To be fair, Melco isn\u2019t the only underperformer among Macau gaming equities. The group notched dismal showings<\/a> last year. That forced valuations to levels some analysts argued were reflective of catastrophic events, such as the global financial crisis and the start of the coronavirus pandemic.<\/p>\n

Melco Can Rebound<\/h2>\n

There are important differences between cheap stocks and credible value names<\/a>. Potentially bolstering the case for Melco is the point that some market observers believe the gaming stock is a value play.<\/p>\n

Morningstar said the stock is worth $12.60, implying it\u2019s undervalued by about 32%. To reach that price, Melco would need to climb more than 50% from current levels. It hasn\u2019t closed above $12.60 since May 2023.<\/p>\n

We believe the gambling market in Macao will enjoy solid growth in the longer term,\u201d<\/strong> notes Morningstar analyst Jennifer Song. \u201cThis structural tailwind is driven by the rising middle class in China and the penetration rate of less than 2% in Macao, compared with Las Vegas\u2019 13%. New hotel rooms by major operators in the next few years should accommodate increased and extended visits from bigger spenders from these provinces, and drive the top line for integrated resort operators.\u201d<\/strong><\/p><\/blockquote>\n

In Macau, Melco operates City of Dreams, Morpheus, Studio City, and Altira. The company also runs casino hotels under the City of Dreams brand in Cyprus and Manila.<\/p>\n

Macau Can Support Melco Resurgence<\/h2>\n

With nongaming revenue in Macau approaching 2019 levels and gross gaming revenue (GGR) on pace to meet or exceed pre-pandemic highs this year, Melco shares could rebound.<\/p>\n

As one of only six concession holders to operate casinos in Macao, Melco Resorts & Entertainment is ideally placed to benefit from this market dynamic, given its portfolio of properties catering to both mass-market and premium patrons,\u201d<\/strong> added Song. \u201cWe expect the launch of Studio City phase 2 with 900 luxury rooms in 2023 to be the next profit driver.\u201d<\/strong><\/p><\/blockquote>\n

Song noted that Melco\u2019s exposure to mass and premium-mass clients dampens the volatility associated with VIP customers, a segment that\u2019s still struggling in Macau because of previous junket industry controversies.<\/p>\n","protected":false},"excerpt":{"rendered":"

For less than the price of a Big Mac in some parts of the U.S., an investor can acquire two shares of Melco Resorts & Entertainment (NASDAQ: MLCO). That’s to say, by price tag, the casino operator is cheap. So cheap that it resides below $10, earning it a place on Morningstar\u2019s recently revealed list […]<\/p>\n","protected":false},"author":46,"featured_media":262737,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,10],"tags":[81913,81903],"acf":[],"yoast_head":"\nMelco One Of Best Sub-$10 Stocks, Says Morningstar<\/title>\n<meta name=\"description\" content=\"Melco Resorts One of 10 Best Stocks Under $10, Says Morningstar.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/melco-one-of-best-sub-10-stocks-says-morningstar\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Melco One Of Best Sub-$10 Stocks, Says Morningstar\" \/>\n<meta property=\"og:description\" content=\"Melco Resorts One of 10 Best Stocks Under $10, Says Morningstar.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/melco-one-of-best-sub-10-stocks-says-morningstar\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2024-02-28T21:31:19+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-02-29T17:23:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/1.jpeg.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/melco-one-of-best-sub-10-stocks-says-morningstar\/\",\"url\":\"https:\/\/www.casino.org\/news\/melco-one-of-best-sub-10-stocks-says-morningstar\/\",\"name\":\"Melco One Of Best Sub-$10 Stocks, Says Morningstar\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/melco-one-of-best-sub-10-stocks-says-morningstar\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/melco-one-of-best-sub-10-stocks-says-morningstar\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/1.jpeg.jpg\",\"datePublished\":\"2024-02-28T21:31:19+00:00\",\"dateModified\":\"2024-02-29T17:23:43+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Melco Resorts One of 10 Best Stocks Under $10, Says Morningstar.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/melco-one-of-best-sub-10-stocks-says-morningstar\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/melco-one-of-best-sub-10-stocks-says-morningstar\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/melco-one-of-best-sub-10-stocks-says-morningstar\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/1.jpeg.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/1.jpeg.jpg\",\"width\":1200,\"height\":800,\"caption\":\"Melco Resorts City of Dreams in Manila. 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