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Should You Buy Wynn Resorts (WYNN) Stock?

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For a variety of reasons, casino stocks are always among the most popular on Wall Street, and trading can often mirror the thrill of winning big at the blackjack table. It’s also easy to become enthralled with the flashiness of the Las Vegas lifestyle. Sin City has created some of the country’s most iconic brands and produced several of the world’s most illustrious businessmen.

Today, no conversation about the casino industry can take place without mentioning Wynn Resorts (WYNN - Free Report) . Founded in 2002 after Steve Wynn sold Mirage Resorts, Wynn Resorts quickly found its foothold in the key gambling hotspots and is now a major player in the casino world.

After posting a solid earnings report earlier this month, Wynn has once again attracted significant investor attention. There’s a growing sense that the Macau region has rebounded, and Wynn should stand to benefit from continued success in China and Las Vegas.

In fact, the company’s newest property, the Wynn Palace in Macau, marked its second full quarter of operations and helped lift Wynn’s total revenue figures 48% on a year-over-year basis. Wynn reported revenues of $1.48 billion, surpassing our consensus estimate of $1.34 billion.

The company also posted better-than-expected profits, with earnings of $1.24 per share easily surpassing our Zacks Consensus Estimate of $0.74.

And over the past 60 days, we have seen a flurry of earnings estimate revision activity around this stock. In fact, there’s been four positive revisions for Wynn’s current-quarter and next-quarter earnings, as well as five for its full-year and next-year earnings, within that timeframe.

Looking even further down the road, Wynn is positioned strongly in both Macau and Las Vegas for years to come. The Wynn Palace is the latest in what has been a widespread development spree in Macau, and as the region continues to recover, revenues in the area should benefit Wynn.

Furthermore, Las Vegas is looking healthy, and Wynn is preparing to build Le Reve, which it has designed to be the preeminent luxury hotel and destination casino resort in the City of Lights. The company also recently gave its Las Vegas golf course a $500 million facelift.

Wynn Resorts is currently a Zacks Rank #1 (Strong Buy).

Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!

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