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Valued at around $9 billion by market cap, Wynn Resorts, Limited (WYNN) designs, develops, and operates integrated resorts. Based in Las Vegas, Nevada, the company owns and operates high-end hotels and casinos such as Wynn Las Vegas, Encore Boston Harbor, Wynn Macau, and Wynn Palace, Cotai.
Companies valued at less than $10 billion or more are generally considered “mid-cap” stocks, and Wynn Resorts fit right into that category. The company offers award-winning restaurants, exciting entertainment and nightlife, award-winning spas, salons, and luxury shopping in its resorts and has won more Forbes Travel Guide Five-Star Awards than any other independent hotel company worldwide.
Shares of WYNN have declined 23.7% from their 52-week high of $110.38, recorded on Apr. 4. The gambling company has dropped 5.5% over the past three months, lagging behind the broader ALPS Global Travel Beneficiaries ETF’s (JRNY) 1.1% return over the same time frame.
In the longer term, WYNN stock is down 7.6% on a YTD basis, lagging behind JRNY’s 3.2% gains. Moreover, shares of WYNN have declined 8% over the past 52 weeks, underperforming JRNY’s 14.3% returns over the same time frame.
WYNN has been trading below its 200-day moving average since late May and has remained below its 50-day moving average since mid-April despite recent fluctuations.
Wynn Resorts has underperformed in 2024 due to its lack of presence in the growing online sports betting market and lower-than-expected travel figures, particularly in Macau, which have negatively impacted its short-term revenue. Furthermore, shares of WYNN dipped 1.9% following its weaker-than-expected Q2 revenue of $1.73 billion and adjusted earnings of $1.12 per share on Aug. 6, despite a year-over-year increase in revenues and profits. This underperformance was primarily driven by softer revenues from the Encore Boston Harbor operations, which fell short of market expectations.
Also, WYNN has lagged behind its rival Las Vegas Sands Corp.’s (LVS) 2.7% decline over the past 52 weeks but has outpaced LVS’s 9.5% drop on a YTD basis.
Despite WYNN’s underperformance, analysts remain bullish about its prospects. The stock has a consensus rating of “Strong Buy” from the 15 analysts covering the stock, and the mean price target of $109.27 suggests a premium of 36.2% to its current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
