Melco Resorts Down 33.7%, Trades at 0.42 P/S Against Competition
Melco Resorts' stock tumbled 33.7% in the past three months versus industry declines after DraftKings unveiled its prediction markets vertical, intensifying sector competition. Melco trades at a forward price-to-sales ratio of 0.42 and is forecast to deliver 15.2% earnings growth in 2026, underscoring its valuation discount.
1. Price Performance
Melco Resorts' shares have fallen 33.7% over the past three months, underperforming the broader gaming and leisure industry which declined 17% over the same period.
2. Valuation Metrics
The stock trades at a forward 12-month price-to-sales ratio of 0.42, significantly below the sector average of 2.21 and well under peers such as DraftKings at 1.76.
3. Earnings Growth Forecast
Consensus estimates project 15.2% earnings per share growth for Melco in 2026, compared with a 72.7% surge forecast for DraftKings and more modest gains at other regional operators.
4. Competitive Outlook
DraftKings’ launch and rapid expansion of a prediction markets vertical highlights intensifying competition across the gaming sector, potentially pressuring Melco’s market share and investor sentiment.