MLCO Stock Analysis: Buy, Sell, or Hold?
MLCO - Melco Resorts & Entertainment Limited American Depositary Shares
$5.49
0.20 (3.78%)
▲
5d:
+1.86%
30d:
-2.31%
90d:
-4.69%
BUY
HIGH Confidence
Analysis Updated: Jul 10, 2026 12:00 AM ET
Earnings: Jul 30, 2026
16d
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: MLCO appears deeply undervalued. Market expects -3.8% annual earnings decline despite 150% recent earnings growth. Contrarian opportunity at discount to historical valuation.
✅ BUY SIGNAL: MLCO appears deeply undervalued. Market expects -3.8% annual earnings decline despite 150% recent earnings growth. Contrarian opportunity at discount to historical valuation.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$12.08
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$7.50
26.8% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 7.4x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: MLCO is currently trading at $5.49, which is considered fair relative to its 30-day fair value range of $5.27 to $5.69. From a valuation perspective, the stock is trading at a discount (Forward PE: 6.5) compared to its historical average (7.4). Remarkably, the market is currently pricing in an annual earnings decline of 3.8% over the next few years. This pessimistic expectation contrasts with the company's recent 150.0% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, MLCO is in a strong uptrend. The price is currently testing key support at $5.47. A bounce from this level would confirm strength, while a break below could signal further downside. The stock is showing strong short-term momentum, up 3.8% recently.
Market Sentiment: MLCO has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $7.88 (+43.4%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, MLCO is in a strong uptrend. The price is currently testing key support at $5.47. A bounce from this level would confirm strength, while a break below could signal further downside. The stock is showing strong short-term momentum, up 3.8% recently.
Market Sentiment: MLCO has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $7.88 (+43.4%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$5.27 -
$5.69
Company Quality Score
54/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
88.1%
All Signals
- NEUTRAL: Price in fair range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Strong upward momentum (+3.8%)
- BULLISH: Trading 43.4% below Wall St target ($7.88)
Trading Range Analysis
30-Day Trading Range
$5.27 -
$5.69
Current vs Trading Range
FAIR
Support & Resistance Levels
Support Level
$5.47
Resistance Level
$6.06
Current Trend
Strong Uptrend
Technical data as of
Jun 9, 2026
Fundamental Context
Forward P/E (Next Year Est.)
6.55
Wall Street Target
$7.88
(+43.4%)
Revenue Growth (YoY)
10.9%
Earnings Growth (YoY)
150.0%
Profit Margin
4.3%
Valuation Discount vs History
-3.8% cheaper
PE vs Historical
6.6 vs 7.4
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-3.8%
(market-implied from PE analysis)
1-Year Target
$5.28
(-4%)
2-Year Target
$5.08
(-8%)
3-Year Target
$4.89
(-11%)
3-Yr Target (if PE normalizes)
(PE: 7→7)
$5.52
(+1%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 41.0%)
$51.19
(+833%)
Base:
(SPY PE: 6.5, Growth: 41.0%)
$15.39
(+180%)
Bear:
(PE: 5.6, Growth: 41.0%)
$13.08
(+138%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (9x PE), but valuation improves significantly next year (7x PE) as earnings recover.
Trailing PE: 9.12 | Current EPS (TTM): $0.58
Bull Case
$8.41
(+53%)
Analyst growth 44.5%, PE expands to 10.0
Base Case
$7.65
(+39%)
Market implied 44.5%, PE stable at 9.1
Bear Case
$3.60
(-35%)
Severe decline -20.0%, PE contracts to 7.8
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 6.5 to 7.4
Stabilization Target:
$6.20
(+13.0%)
PE Expansion Potential:
+13.0%
Share & Embed Analysis
Last updated: July 13, 2026 9:19 AM ET
Data refreshes hourly during market hours. Next update: 10:19 AM
Data refreshes hourly during market hours. Next update: 10:19 AM
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Technical Signals Check
Is MLCO showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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