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Here's Why You Should Retain Wynn Resorts (WYNN) Stock Now

The past two years have been tough for the gaming industry and Wynn Resorts, Limited WYNN has been no exception to the trend. In the past two years, the company’s shares have slumped 39.6%, compared with the industry’s decline of 18.8%. Dismal visitation due to the pandemic, and tougher Macau gaming rules have negatively impacted the company’s performance.

However, improvement in visitation and robust demand for sports betting are likely to aid the company. The company also breathed a sigh of relief after the Macau government proposed new amendments with respect to gaming concession renewals. The announcement eliminates the fear of potential dilution of existing casino operators in the region. The new rules are subject to approval by the Macau legislature.

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Key Growth Drivers

Although the company’s business in Macau and Las Vegas has been affected by the coronavirus pandemic, the demand has been improving gradually. The company’s full-scale integrated resort in Cotai, Macau, is poised to witness increased visits from tourists and leisure gamblers over the long term, which should strengthen its position in the Cotai strip. Such projects are expected to draw business and leisure travelers, and provide a solid platform for growth. In fact, building resorts in Boston and Macau will aid Wynn Resorts to capitalize on strong consumer spending trends in the region.

Wynn Resorts generates a solid share of revenues from Macau — the largest gaming destination in the world. Despite the coronavirus pandemic, the company is confident about its prospects in Macau. The worst seems to be over for the gaming industry in Macau as China’s economy is slowly gaining momentum.

The Zacks Rank #3 (Hold) company has been focusing on sports betting expansion to drive growth. In an effort to focus on online betting, it announced the merger of Wynn Interactive with Austerlitz Acquisition Corp. The company will invest $640 million to drive growth. Meanwhile, WynnBET sports betting and online casino application were operational in New Jersey for quite some time.

In the second quarter of 2021, the company progressed with new product delivery and marketing program, particularly for the NFL 2021 football season. This includes web application launches in Indiana, Colorado, Tennessee, New Jersey and Virginia. It strengthened third-party partnerships through agreements with the Detroit Lions, the Colorado Rockies and Cumulus Media. The company also collaborated with several engaging content creators to develop a unique sports-themed program. As of Sep 30, 2021, Wynn Interactive generated annualized gross revenues of more than $170 million. Going forward, the company anticipates solid revenue generation on the back of new product features and a unique marketing campaign.

Key Picks

Some better-ranked stocks from the Zacks Consumer Discretionary sector include Hilton Grand Vacations Inc. HGV, Bluegreen Vacations Holding Corporation BVH and RCI Hospitality Holdings, Inc. RICK.

Hilton Grand Vacations sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 411.1%, on average. Shares of Hilton Grand Vacations have appreciated 58.4% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for HGV’s 2022 sales and earnings per share (EPS) suggests growth of 27.7% and 154.4%, respectively, from the year-ago period’s levels.

Bluegreen Vacations sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 695%, on average. Shares of Bluegreen Vacations have surged a whopping156.4% in the past year.

The Zacks Consensus Estimate for BVH’s 2022 sales and EPS indicates a rise of 7.6% and 0.4%, respectively, from the year-ago period’s levels.

RCI Hospitality flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 67.7%, on average. Shares of RCI Hospitality have soared 123.9% in the past year.

The Zacks Consensus Estimate for RICK’s 2022 sales and EPS suggests growth of 34.9% and 22.1%, respectively, from the year-ago period’s levels.


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Wynn Resorts, Limited (WYNN): Free Stock Analysis Report
 
RCI Hospitality Holdings, Inc. (RICK): Free Stock Analysis Report
 
Hilton Grand Vacations Inc. (HGV): Free Stock Analysis Report
 
Bluegreen Vacations Holding Corporation (BVH): Free Stock Analysis Report
 
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