Wynn Resorts Ltd. Stock Shows Promise Amidst Industry Rebound
Wynn Resorts Ltd. (WYNN), a renowned hotel-casino operator with a global presence, has been making waves in the stock market recently. The company, known for its iconic resorts such as Wynn Palace and Encore Boston Harbor, has also ventured into the digital sports betting and iGaming space with Wynn Interactive.
Despite a modest performance in 2024, with a YTD increase of just 1.6%, WYNN stock has shown resilience with a 10.6% gain in the past 6 months. Trading at a discounted multiple of around 16x forward earnings and 1.41x sales compared to historical averages, Wynn Resorts presents a lucrative opportunity for investors.
In its latest quarterly earnings report released on May 7, Wynn Resorts exceeded market expectations with earnings per share reaching $1.30, or $1.59 on an adjusted basis. The company’s total revenue for the period stood at $1.86 billion, marking a significant YoY increase of 30.9%. While gross margin saw a slight decline, operating margin witnessed improvement, reflecting the company’s operational efficiency.
Analysts have expressed strong confidence in WYNN stock, with a consensus rating of “Strong Buy” among 14 analysts tracking the company. Argus analyst John Staszak recently upgraded the stock to a “buy” rating, projecting a price target of $110, indicating an upside potential of nearly 19%.
Staszak emphasized Wynn Resorts’ attractive valuation based on its revised 2024 EPS estimate and highlighted the potential for growth in its various business segments. With the anticipated resurgence of convention activities in Las Vegas and expansion in online sports betting, Wynn Resorts is poised for substantial growth in the coming months.
Overall, industry experts remain optimistic about the future prospects of Wynn Resorts Ltd., with a consensus price target of $124.61, implying a potential rally of 34.6% from current levels. As the company continues to innovate and capitalize on emerging opportunities, investors are advised to consider adding WYNN stock to their portfolios for long-term gains.