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Wynn Resorts, Limited (WYNN), founded in 2002 and headquartered in Las Vegas, Nevada, is a global leader in luxury hospitality and casino resorts. With a market cap of $9.7 billion, WYNN is renowned for delivering world-class entertainment, exceptional service, and iconic destinations that redefine the luxury experience worldwide.
Companies valued at under $10 billion are typically classified as “mid-cap” stocks, a category in which Wynn Resorts firmly belongs. With its unwavering dedication to luxury and innovation, Wynn continues to set the standard in the hospitality and gaming industries, offering unparalleled experiences that redefine excellence in entertainment and leisure worldwide.
Wynn Resorts’ shares are currently trading 19.7% below their 52-week high of $110.38, reached on Apr. 4. The stock has declined 9.2% over the three months, underperforming the broader S&P 500 Index’s ($SPX) 4.1% gains during the same time frame.
Over the past six months, WYNN has seen a slight decline, falling short of the SPX's 8.9% gain. Over the past year, WYNN dropped by 2.2%, significantly underperforming the SPX, which posted impressive growth of 24.8% during the same period.
The stock has remained below its 50-day and 200-day moving averages since early November, indicating a bearish trend.
On Nov. 29, WYNN gained over 2% after China eased visa rules for residents of Shenzhen and Zhuhai, boosting casino stocks with Macau operations.
Earlier, its shares dropped 9.3% following the disappointing Q3 earnings release on Nov. 4. The company reported $1.69 billion in revenue, up 1.3% year-over-year but falling 2% short of analyst estimates. Adjusted EPS amounted to $0.90, missing expectations of $1.10. EBITDA came in at $290.8 million, a 47.4% shortfall from the anticipated $552.9 million.
Margins showed mixed performance. The gross margin declined sharply to 42.3% from 67.5% a year ago, while the operating margin improved to 7.9% from 3.7%. However, the EBITDA margin contracted to 17.2% from 26.5% during the same period last year.
WYNN's competitor, Las Vegas Sands Corp. (LVS), has significantly outperformed in comparison. LVS stock has gained 6.8% over the past 52 weeks.
Despite WYNN's underperformance relative to the broader market, analysts remain optimistic about its future. Of the 15 analysts covering the stock, the consensus rating is “Strong Buy.” It has a mean price target of $114.69, which suggests a potential upside of 29.3% from its current level.
