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Here's Why Investors Should Bet on Wynn Resorts (WYNN) Stock
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Wynn Resorts, Limited (WYNN - Free Report) is gaining from its improving Macau business, robust sports betting and expansion efforts. In the past six months, the stock has surged 89.1% compared with the industry’s growth of 35.3%.
Our model estimates the company’s 2023 revenues to increase 16.5% year over year to $4,378 million, whereas it reported a decline of 0.2% in 2022. We expect casino, rooms, and food and beverage revenues to rise 11.1%, 37% and 20.4%, year over year, respectively. WYNN is likely to witness a year-over-year bottom-line improvement of 80%.
Let’s delve deeper into the factors that are likely to spur the Zacks Rank #2 (Buy) company’s growth.
Growth Drivers
Improving Macau visitation is a boon for Wynn Resorts. The government of China is considering measures to support Macau’s economy and introduce favorable policies, which are expected to improve visitation patterns, and boost tourism and traffic in the region. These include the approval of Macau’s maritime expansion plans that are expected to aid shipping and tourism.
In fourth-quarter 2022, Wynn Resorts (Macau) entered a 10-year agreement with the Macau government for the renewal of its gaming concession, covering Wynn Macau and Wynn Palace Cotai. For 2023, it expects capex related to concession commitments of $50-$220 million. The company expects the proposed capex and programming to drive growth in the upcoming period.
WYNN is benefiting from sound demand for sports betting. It collaborated with several engaging content creators to develop unique sports-themed program. The company anticipates solid revenue generation on the back of new product features and a unique marketing campaign.
Image Source: Zacks Investment Research
Emphasis on the expansion of new markets bodes well. Wynn Resorts and Marjan, RAK Hospitality Holding recently reached an agreement to develop a multi-billion-dollar integrated resort on the artificial Al Marjan Island in Ras Al Khaimah, United Arab Emirates. Scheduled to open in 2026, this property will mark the company’s first resort in the MENA region. It will have more than 1,000 rooms, top-notch shopping venues, a state-of-the-art meeting and convention facility, an exclusive spa, and more than 10 restaurants and lounges.
Cedar Fair has a trailing four-quarter earnings surprise of 64.5%, on average. The stock has declined 17.3% in the past year.
The Zacks Consensus Estimate for FUN’s 2024 sales and EPS indicates increases of 2% and 6.5%, respectively, from the year-ago period’s actuals.
Hilton Grand Vacations has a trailing four-quarter earnings surprise of 12.1%, on average. Shares of HGV have declined 8% in the past year.
The Zacks Consensus Estimate for HGV’s 2023 sales and EPS indicates growth of 7.1% and 10.8%, respectively, from the year-ago period’s reported levels.
Crocs has a trailing four-quarter earnings surprise of 21.8%, on average. The stock has improved 73.1% in the past year.
The Zacks Consensus Estimate for CROX’s 2023 sales and EPS indicates increases 12.5% and 2.5%, respectively, from the year-ago period’s reported levels.
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Here's Why Investors Should Bet on Wynn Resorts (WYNN) Stock
Wynn Resorts, Limited (WYNN - Free Report) is gaining from its improving Macau business, robust sports betting and expansion efforts. In the past six months, the stock has surged 89.1% compared with the industry’s growth of 35.3%.
Our model estimates the company’s 2023 revenues to increase 16.5% year over year to $4,378 million, whereas it reported a decline of 0.2% in 2022. We expect casino, rooms, and food and beverage revenues to rise 11.1%, 37% and 20.4%, year over year, respectively. WYNN is likely to witness a year-over-year bottom-line improvement of 80%.
Let’s delve deeper into the factors that are likely to spur the Zacks Rank #2 (Buy) company’s growth.
Growth Drivers
Improving Macau visitation is a boon for Wynn Resorts. The government of China is considering measures to support Macau’s economy and introduce favorable policies, which are expected to improve visitation patterns, and boost tourism and traffic in the region. These include the approval of Macau’s maritime expansion plans that are expected to aid shipping and tourism.
In fourth-quarter 2022, Wynn Resorts (Macau) entered a 10-year agreement with the Macau government for the renewal of its gaming concession, covering Wynn Macau and Wynn Palace Cotai. For 2023, it expects capex related to concession commitments of $50-$220 million. The company expects the proposed capex and programming to drive growth in the upcoming period.
WYNN is benefiting from sound demand for sports betting. It collaborated with several engaging content creators to develop unique sports-themed program. The company anticipates solid revenue generation on the back of new product features and a unique marketing campaign.
Image Source: Zacks Investment Research
Emphasis on the expansion of new markets bodes well. Wynn Resorts and Marjan, RAK Hospitality Holding recently reached an agreement to develop a multi-billion-dollar integrated resort on the artificial Al Marjan Island in Ras Al Khaimah, United Arab Emirates. Scheduled to open in 2026, this property will mark the company’s first resort in the MENA region. It will have more than 1,000 rooms, top-notch shopping venues, a state-of-the-art meeting and convention facility, an exclusive spa, and more than 10 restaurants and lounges.
Other Stocks to Consider
Some other top-ranked stocks in the Zacks Consumer Discretionary sector are Cedar Fair, L.P. (FUN - Free Report) , Hilton Grand Vacations Inc. (HGV - Free Report) and Crocs, Inc. (CROX - Free Report) , each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cedar Fair has a trailing four-quarter earnings surprise of 64.5%, on average. The stock has declined 17.3% in the past year.
The Zacks Consensus Estimate for FUN’s 2024 sales and EPS indicates increases of 2% and 6.5%, respectively, from the year-ago period’s actuals.
Hilton Grand Vacations has a trailing four-quarter earnings surprise of 12.1%, on average. Shares of HGV have declined 8% in the past year.
The Zacks Consensus Estimate for HGV’s 2023 sales and EPS indicates growth of 7.1% and 10.8%, respectively, from the year-ago period’s reported levels.
Crocs has a trailing four-quarter earnings surprise of 21.8%, on average. The stock has improved 73.1% in the past year.
The Zacks Consensus Estimate for CROX’s 2023 sales and EPS indicates increases 12.5% and 2.5%, respectively, from the year-ago period’s reported levels.