Michael Burry from the famous movie «Big Short» invest in these 2 Stocks

The Big Short, a book and later a movie that chronicled Michael Burry’s success in betting against the housing market during the 2008 financial crisis, made him famous throughout the world for his exploits. That decision ended up being extremely profitable.

Burry went short at that time and hasn’t held back in issuing repeated cautions regarding the state of the market. Burry has made numerous bearish remarks, including that stocks are overvalued, high inflation isn’t going anywhere, and a «multi-year recession» is imminent, in addition to some recent enigmatic tweets that allude to impending catastrophe.

We’ve retrieved the information on two of his most recent selections using the TipRanks database. Do the stock analysts on Wall Street believe these are also worth buying right now? Both stocks appear to be strong buys according to analyst consensus. Let’s review the specifics.

Consistent Corp. (COHR)

Coherent, a leader in laser system development, is the first Burry-backed stock we’ll examine. As a designer and manufacturer of precision equipment, the company is well-known in the fields of engineered materials and optoelectronic component systems. Although the business has filled this void ever since it was founded in 1971, the name and ticker are comparatively new. The company, which was formerly known as II-VI, acquired Coherent in July and changed its name. The new addition increased the value proposition of the business by bringing its own laser technology to the table.

The results for the second quarter of fiscal 2023 showed that the integration of the new addition appeared to be going well (December quarter). Meeting Wall Street expectations, revenue increased by 70% year over year to a record $1.37 billion, with organic revenue growth up 23%. The company also reported a backlog of $2.9 billion, an increase of 68% from the previous year. Adj. EPS of $0.95 beat the analysts’ expected $0.93 for the bottom line.

MGM Resorts (MGM)

Burry’s next stock pick offers something entirely different. Providing a wide range of services, MGM Resorts is a multinational hospitality and entertainment company. These include world-class casinos and hotels, live and theatrical performances, as well as a variety of nightlife and shopping options. Bellagio, MGM Grand, ARIA, and Park MGM are just a few of the well-known resort brands on its roster. In total, the company operates 29 different hotels and gaming options across the US and Macau.

This sector of the economy was severely affected by the pandemic, but MGM’s recovery has been impressive. In the most recent Q4 report, the company reported revenue of $3.6 billion, an increase of 18% over the prior year and exceeding Street expectations of $3.35 billion. Revenues from the Las Vegas Strip, which made up the majority of sales, totaled $2.3 billion, an increase of $500 million from the same time last year. In addition to beating the Street’s prediction of EPS of -$1.57, the company reported a loss per share of $1.53.